| IR-2006-196 |
December 28, 2006 |
IRS Announces Installment Agreement User Fee Increases for Some Taxpayers -
This news release supersedes News Release IR-2006-176, dated Nov. 13, 2006. |
| Beginning Jan. 1, 2007, the Internal Revenue Service will implement revised user fees for installment agreements. For eligible individuals with income at or below certain levels, the fee for entering new agreements will not increase but remain at the 2006 level. |
| IR-2006-195 |
December 22, 2006 |
| IRS Begins Implementing Extenders Legislation; Works to Help Taxpayers During Filing Season |
| The Internal Revenue Service announced new guidance today to help tax filers in 2007 claim the extended deductions and other tax advantages in the Tax Relief and Health Care Act of 2006 signed into law this week. |
| IR-2006-194 |
December 22, 2006 |
| Purchasers of Ford and Mercury Hybrids Still Qualify for Tax Credit |
| The Internal Revenue Service announced that purchasers of qualified Ford Motor Company vehicles may continue to claim the Alternative Motor Vehicle Credit. The announcement comes after the IRS concluded its third quarterly review of the number of hybrid vehicles sold. |
| IR-2006-193 |
December 21, 2006 |
| IRS To Begin Processing Suspended Cash Balance Plan Conversion Applications |
| The Internal Revenue Service today announced it is lifting a moratorium on determination letter applications for conversions from traditional defined benefit pension plans to so-called cash balance plans. |
| IR-2006-192 |
December 14, 2006 |
| Recent Tax Law Changes May Affect People Giving to Charity: IRS Offers Tips for Year-End Donations |
| Individuals and businesses making contributions to charity should keep in mind several important tax law changes made last summer by the Pension Protection Act. |
| IR-2006-191 |
December 13, 2006 |
| IRS Issues Fall 2006 Statistics of Income Bulletin |
| The Internal Revenue Service today announced the release of the Fall 2006 issue of the Statistics of Income Bulletin. The Bulletin contains a detailed look at the 132.2 million individual income tax returns filed for tax year 2004, an increase from the 130.4 million returns filed for tax year 2003. The adjusted gross income (AGI) less deficit reported on these returns totaled $6.8 trillion, while taxable income totaled $4.7 trillion. |
| IR-2006-190 |
December 12, 2006 |
| No Change in Interest Rates for the First Quarter of 2007 |
| The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning January 1, 2007. The interest rates are as follows: • eight (8) percent for overpayments [seven (7) percent in the case of a corporation]; • eight (8) percent for underpayments; • ten (10) percent for large corporate underpayments; and • five and one-half (5.5) percent for the portion of a corporate overpayment exceeding $10,000. |
| IR-2006-189 |
December 7, 2006 |
| Procedure for Making Certain Submissions to the IRS Returns to Normal |
| With the reopening of the Internal Revenue Service’s headquarters building, the temporary procedures for submitting certain requests and submissions will no longer be in effect. As of December 11, taxpayers should make their submissions as they normally did before the IRS building at 1111 Constitution Ave. temporarily closed due to a flood. |
| IR-2006-188 |
December 8, 2006 |
| IRS Headquarters Reopens; First Employees Return Today |
| The Internal Revenue Service Headquarters Building reopened today as the first wave of employees returns to the facility following extensive flooding in June, the IRS and General Services Administration announced today. |
| IR-2006-187 |
December 5, 2006 |
| RALs Removed on Free File; 93 Million Eligible for Program |
| The successful and innovative Free File program launches its fifth year in January with an agreement by private sector partners to remove ancillary offerings such as Refund Anticipation Loans (RALs) from the program. |
| IR-2006-186 |
December 1, 2006 |
| New Guidelines for Payroll Deduction Contributions to Charities |
| The Internal Revenue Service announced today new guidelines for taxpayers to follow to substantiate donations to charities that were made by payroll deductions. |
| FS-2006-27 |
November 2006 |
| Depreciation Reminders |
| The Internal Revenue Service encourages taxpayers to understand the rules surrounding depreciation before attempting to deduct business-related depreciation expenses. |
| FY 2006 |
November 2006 |
| Fiscal Year 2006 Enforcement and Service Results |
| The IRS made strong progress in a number of key enforcement categories. We are showing consistent improvements in areas critical to running a fair, efficient tax system. We are bringing in billions of dollars to the Treasury through our expanded enforcement activity. At the same time, I want to emphasize that this increase has not been at the expense of taxpayer service. We continued to show improvements in key areas involving services for taxpayers in fiscal 2006. |
| IR-2006-185 |
November 30, 2006 |
| Treasury And IRS Issue Notice On Reporting And Withholding For Amounts Includible In Gross Income Under Code Section 409A |
| Today Treasury and the IRS issued Notice 2006-100 providing guidance to employers and payers on their reporting and wage withholding requirements for calendar years 2005 and 2006 with respect to deferrals of compensation and amounts includible in gross income under IRC § 409A and relief from reporting deferrals that are not includible in income during those years. The notice supersedes Notice 2005-94. |
| IR-2006-184 |
November 30, 2006 |
| $1 Billion In Tax Credits Allocated to Clean Coal Projects |
| The Internal Revenue Service announced that it has allocated nearly $1 billion of tax credits to nine planned clean coal projects. |
| IR-2006-183 |
November 22, 2006 |
| Additional Honda Vehicles Certified for Hybrid Tax Credits |
| The Internal Revenue Service has acknowledged the certification by American Honda Motor Company, Inc., that several of its Model Year 2007 vehicles meet the requirements of the Alternative Motor Vehicle Credit as qualified hybrid motor vehicles. |
| IR-2006-182 |
November 22, 2006 |
| Honda Compressed Natural Gas Vehicle Certified for Tax Credit |
| The Internal Revenue Service has acknowledged the certification by American Honda Motor Company, Inc., that its Honda Civic GX Model Year 2007 vehicle meets the requirements of the Alternative Motor Vehicle Credit. |
| IR-2006-181 |
November 20, 2006 |
| Clean Renewable Energy Bond Volume Cap Allocation Information |
| This information release provides certain general information regarding the results of the volume cap allocation process for the new Clean Energy Renewable Bonds (“CREBs”) program created under the Energy Tax Incentives Act of 2005. |
| IR-2006-180 |
November 17, 2006 |
| IRS Makes Settlement Offer to Certain Foreign Embassy Staff |
| The Internal Revenue Service today encouraged U.S.-based employees and former employees of foreign embassies, foreign consular offices and international organizations to participate in a one-time settlement initiative to resolve tax matters related to their employment. |
| IR-2006-179 |
November 16, 2006 |
| Businesses and Tax-Exempts Can Use Formula for Telephone Tax Refund |
| The Internal Revenue Service today announced a formula that will allow businesses and tax-exempt organizations to estimate their federal telephone excise tax refunds. |
| IR-2006-178 |
November 16, 2006 |
| IRS Has Refund for 95,746 Taxpayers Whose Checks Could Not Be Delivered |
| An average refund of $963 is waiting for 95,746 taxpayers whose refund checks have been returned to the Internal Revenue Service as undeliverable. |
| IR-2006-177 |
November 15, 2006 |
| Honda Hybrids Still Qualify for Tax Credit |
| The Internal Revenue Service announced that purchasers of qualified American Honda Motor Company, Inc., vehicles may continue to claim the Alternative Motor Vehicle Credit. |
| IR-2006-176 |
November 13, 2006 |
| Installment Agreement User Fees to Increase - (This News Release superseded by News Release IR-2006-196 |
| The Internal Revenue Service announced today increases in user fees for installment agreements. The increases — the first since the fees were implemented in 1995 — result from increases in labor and other costs of processing the various applications. |
| IR-2006-175 |
November 9, 2006 |
| IRS Provides Guidance on Per Diem Expense Reimbursements Paid By Employers |
| The Internal Revenue Service today issued guidance emphasizing the need for employers to track the amount of expense reimbursement allowances paid to employees on a per diem basis. |
| IR-2006-174 |
November 9, 2006 |
| New Top Leadership Team Selected |
| Internal Revenue Service Commissioner Mark W. Everson today announced the appointment of Kevin Brown and Linda Stiff as the agency’s two new deputy commissioners, effective December 1. |
| IR-2006-173 |
November 9, 2006 |
| 2007 Inflation Adjustments Widen Tax Brackets, Expand Tax Benefits |
| Personal exemptions and standard deductions will rise, tax brackets will widen and income limits for IRAs will increase in 2007, thanks to inflation adjustments announced today by the Internal Revenue Service. |
| IR-2006-172 |
November 9, 2006 |
| Credit for Toyota and Lexus Hybrids Begins Phase-Out With Reporting of Third Quarter Sales |
| After reviewing the third quarter sales of Toyota Motor Sales, USA, Inc., the Internal Revenue Service announced that purchasers Toyota and Lexus vehicles may continue to claim the Alternative Motor Vehicle Credit. Given the number of vehicles sold, the phase out period for Toyota vehicles began on Oct. 1, 2006. |
| IR-2006-171 |
November 9, 2006 |
| Purchasers of GM Hybrids Still Qualify for Tax Credit |
| The Internal Revenue Service announced that purchasers of General Motors Corp. qualified vehicles may continue to claim the Alternative Motor Vehicle Credit. The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold. |
| IR-2006-170 |
November 8, 2006 |
| Patriot's Day 2007 Gives Some Taxpayers Extra Tax Time |
| Individuals in six eastern states and the District of Columbia will have an extra day until April 17, 2007, to file their 2006 returns and pay any taxes due according to the Internal Revenue Service. |
| IR-2006-169 |
November 6, 2006 |
| IRS Selects New Members and a Chairman for ETAAC |
| The Internal Revenue Service today announced the selection of five new members 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 November 2006 and ending November 2009. |
| IR-2006-168 |
November 1, 2006 |
| IRS Announces 2007 Standard Mileage Rates |
| The Internal Revenue Service today issued the 2007 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. |
| IR-2006-167 |
November 1, 2006 |
| Treasury, IRS Issue Regulations on Requirements for Disclosing Reportable Transactions and Maintaining Lists |
| The Treasury Department and the Internal Revenue Service today issued updated regulations reflecting changes to the requirements for disclosure of reportable transactions by taxpayers and material advisors and reflecting changes to the requirements for list maintenance by material advisors made by the American Jobs Creation Act of 2004. |
| Standard Mileage Rates |
November 2006 |
| Standard Mileage Rates |
| The following table summarizes the optional standard mileage rates for employees, self-employed individuals, or other taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. |
| FS-2006-26 |
October 2006 |
| Car and Truck Expense Deduction Reminders |
| The Internal Revenue Service reminds taxpayers to become familiar with the tax law before deducting car- and truck-related business expenses. |
| IR-2006-166 |
October 31, 2006 |
| IRS Seeks Applications for TE/GE Advisory Committee |
| The Internal Revenue Service is seeking applications for vacancies on the Advisory Committee on Tax Exempt and Government Entities (ACT). The committee provides a venue for public input into critical tax administration areas. |
| IR-2006-165 |
October 20, 2006 |
| Additional Ford Hybrid Vehicles Certified for Tax Credit |
| The Internal Revenue Service has acknowledged the certification by Ford Motor Company that two of its 2005 vehicles meet the requirements of the Alternative Motor Vehicle Credit as qualified hybrid motor vehicles. |
| IR-2006-164 |
October 18, 2006 |
| IRS Provides Limited Tax Relief for Hawaii Earthquake Victims |
| The Internal Revenue Service today announced limited tax relief for taxpayers in Hawaii affected by the earthquake on Oct. 15, 2006. |
| IR-2006-163 |
October 18, 2006 |
| IRS Formalizes Appeals Arbitration Process |
| The Internal Revenue Service announced today that the Appeals arbitration process is no longer a pilot program but part of business as usual at the IRS. In arbitration the IRS and the taxpayer agree to have a third party make a decision about a factual issue that will be binding on both of them. |
| IR-2006-162 |
October 18, 2006 |
| IRS Announces Pension Plan Limitations for 2007 |
| The Internal Revenue Service today announced cost of living adjustments applicable to dollar limitations for pension plans and other items for Tax Year 2007. |
| IR-2006-161 |
October 17, 2006 |
| Treasury and IRS Update Rules on Exchanges for Annuities |
| The Department of the Treasury and the Internal Revenue Service today issued proposed regulations that would address the tax treatment of an exchange of property for an annuity contract. The proposed regulations would apply the same rule to exchanges for both private annuities and commercial annuities. |
| IR-2006-160 |
November 1, 2006 |
| IRS Grants Tax Relief for Victims of New York Snowstorm |
| The Internal Revenue Service today announced special tax relief for New York State taxpayers in the Presidential Disaster Area that was struck by severe storms and flooding on Oct. 12 and 13, 2006. |
| IR-2006-159 |
October 16, 2006 |
| IRS Announces Online Payment Agreement Application |
| Many individuals who owe delinquent federal income taxes will now be able to apply online for a payment agreement, the IRS announced today. The Online Payment Agreement (OPA) application, now available on IRS.gov, provides an easy way to voluntarily resolve tax liabilities. |
| IR-2006-158 |
October 13, 2006 |
| IRS Names New Head for Employee Plans Rulings & Agreements |
| The Internal Revenue Service has selected Andrew E. Zuckerman as the new Director of Rulings & Agreements in the Employee Plans division. In this position, Zuckerman will be responsible for developing and managing the IRS’s up-front compliance programs for Employee Plans, including the EP voluntary compliance programs, the determination letter program and the development of guidance and rulings. |
| IR-2006-157 |
October 12, 2006 |
| IRS, The George Washington University Law School Sponsor Institute on International Tax Issues |
| The Internal Revenue Service today announced the 19th Annual Institute on Current Issues in International Taxation. It is jointly sponsored by the IRS and The George Washington University Law School and will be held on December 14 and 15, 2006, at the Grand Hyatt Washington Hotel in Washington, DC. Registration is underway for the Institute, which is intended for international tax professionals. |
| IR-2006-156 |
October 10, 2006 |
| William P. O’Shea Named Associate Chief Counsel, Passthroughs and Special Industries |
| The Internal Revenue Service today announced the assignment of William P. O’Shea to the position of Associate Chief Counsel, Passthroughs and Special Industries, effective Oct. 8, 2006. |
| IR-2006-155 |
October 3, 2006 |
| IRS Announces Availability of 2006 Special Enrollment Exam |
| The Internal Revenue Service announced today that the new version of the 2006 IRS Special Enrollment Examination (SEE) is ready. The test, required for those who want to become Enrolled Agents, has been substantially revised and is being offered more often and in more places than in the past. The first testing window begins October 5, 2006. |
| FS-2006-25 |
September 2006 |
| Home Office Deduction Reminders |
| Overstated adjustments, deductions, exemptions and credits account for up to $30 billion per year in unpaid taxes, according to IRS estimates. In order to educate taxpayers regarding their filing obligations, this fact sheet, the fourth in a series, explains the rules for deducting home office expenses. |
| IR-2006-154 |
September 29, 2006 |
| Additional Toyota and Lexus Vehicles Certified for the Energy Tax Credit |
| The Internal Revenue Service acknowledged the certification by Toyota Motor Sales U.S.A., Inc., that several of their hybrid Model Year 2007 vehicles qualify for the hybrid tax credit enacted by the Energy Policy Act of 2005. |
| IR-2006-153 |
September 28, 2006 |
| IRS Announces New Senior Technical Advisor in Tax Exempt and Government Entities Division |
| The Internal Revenue Service today announced the selection of Ronald J. Schultz as Senior Technical Advisor to the Commissioner of the IRS’s Tax Exempt and Government Entities division. |
| IR-2006-152 |
September 28, 2006 |
| Active-Duty Reservists Get Relief on Retirement Plan Payments: Refunds of 10-Percent Tax Available Back to 2001, New Law Says |
| Military reservists called to active duty can receive payments from their individual retirement accounts, 401(k) plans and 403(b) tax-sheltered annuities, without having to pay the early-distribution tax, according to the Internal Revenue Service. |
| IR-2006-151 |
September 27, 2006 |
| IRS Reminds Katrina Victims of Oct. 16 Filing Deadline |
| The Internal Revenue Service reminds affected taxpayers from the areas of Louisiana, Mississippi and Alabama most severely damaged by Hurricane Katrina that the deadline for filing tax year 2004 and 2005 individual income tax returns is Oct. 16, 2006. |
| IR-2006-150 |
September 25, 2006 |
| Clarissa C. Potter Named IRS Deputy Chief Counsel (Technical) |
| The Internal Revenue Service today announced the appointment of Clarissa C. Potter to the position of Deputy Chief Counsel (Technical) effective Sept. 24, 2006. Potter will replace Heather Maloy, currently acting in the position and officially the Associate Chief Counsel (Passthroughs and Special Industries). Maloy is leaving the government to return to private practice. |
| IR-2006-149 |
September 22, 2006 |
| IRS Issues Summer 2006 Statistics of Income Bulletin |
| The Internal Revenue Service today announced the release of the Summer 2006 issue of the Statistics of Income Bulletin. The Summer Bulletin contains in-depth looks at sole proprietorship returns for 2004, foreign-controlled domestic corporations (FCDCs) for 2003-2004, U.S. Possessions corporation returns for 2003, special estate tax provisions for family-owned farms and closely held businesses, Statistics of Income studies of international income and taxes, and Federal estate tax returns for nonresident aliens, 2003, 2004 and 2005. |
| IR-2006-148 |
September 21, 2006 |
| IRS Announces New Leadership Positions in Tax Exempt and Government Entities Division |
| The Internal Revenue Service today announced the selections of Michael Julianelle as the Director of Government Entities and Joseph H. Grant as the Director of Employee Plans. Both organizations are part of the IRS’s Tax Exempt and Government Entities Division. |
| IR-2006-147 |
September 20, 2006 |
| More than 12,500 Corporations E-filed 2005 Tax Returns in First Year of New Requirement |
| The Internal Revenue Service today announced that more than 12,500 of the nation’s largest corporations have electronically filed their 2005 corporate tax returns. |
| IR-2006-146 |
September 20, 2006 |
| Richard A. Spires to Serve as IRS Chief Information Officer |
| Internal Revenue Service Commissioner Mark W. Everson today announced the appointment of Richard A. Spires as the agency’s new Chief Information Officer, effective Sept. 17. |
| IR-2006-145 |
September 20, 2006 |
| Toyota Hybrid Begins Phaseout on October 1 |
| The Internal Revenue Service announced today that Toyota Motor Sales, U.S.A., Inc. has submitted quarterly reports indicating that its cumulative sales of qualified vehicles to retail dealers has reached the 60,000-vehicle limit during the calendar quarter ending June 30, 2006. Under the current tax law, the credit for buying a hybrid vehicle begins to phase out during the second calendar quarter after the quarter in which the company sells its 60,000th hybrid or lean burn technology vehicle. |
| IR-2006-144 |
September 19, 2006 |
| Filing Deadline Set for October 16; Free File Still Available |
| Individual taxpayers who received a six-month extension to file their 2005 income tax return have less than a month remaining. The deadline to file the tax return is October 16. |
| O.E.C.D. |
September 15, 2006 |
| OECD Tax Administrators to Join Forces in Fighting Tax Non-Compliance |
| Tax administration heads from more than 30 countries, meeting in Seoul under the auspices of the Organization for Economic Cooperation and Development's (OECD) Forum on Tax Administration, have agreed to work together on ways to improve tax administration and to address the significant and growing problem of international non-compliance with national tax requirements. |
| IR-2006-143 |
September 11, 2006 |
| No Change in Interest Rates Rise for the Fourth Quarter of 2006 |
| The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning October 1, 2006. The interest rates are as follows: eight (8) percent for overpayments [seven (7) percent in the case of a corporation]; eight (8) percent for underpayments; ten (10) percent for large corporate underpayments; and five and one-half (5.5) percent for the portion of a corporate overpayment exceeding $10,000. |
| IR-2006-142 |
September 11, 2006 |
| IRS Accepts Settlement Offer in Largest Transfer Pricing Dispute |
| The Internal Revenue Service announced today that it has successfully resolved a transfer pricing dispute with Glaxo SmithKline Holdings (Americas) Inc. & Subsidiaries (“GSK”). This case, which is pending in the United States Tax Court, represents the largest tax dispute in the history of the Internal Revenue Service. Under the settlement agreement, GSK will pay the Internal Revenue Service approximately $3.4 billion, and will abandon its claim seeking a refund of $1.8 billion in overpaid income taxes, as part of an agreement to resolve the parties' long-running transfer pricing dispute for the tax years 1989 through 2005. |
| IR-2006-141 |
September 8, 2006 |
| Replacement Period Extended for Farmers Selling Livestock Because of Drought |
| Farmers affected by exceptional, extreme or severe drought conditions have been granted additional time to purchase replacement property for livestock they were forced to sell, the Internal Revenue Service announced today in Notice 2006-82. |
| IR-2006-140 |
September 7, 2006 |
| Taxpayers Should Check Mailing Addresses for Rev. Proc. 2006-1 |
| Taxpayers seeking IRS Chief Counsel advice as outlined in Revenue Procedure 2006-1 are reminded to submit their requests and additional information to the addresses listed in the revenue procedure. There may be some confusion related to a previous new release, IR-2006-138, concerning which mailing address should be used. |
| IR-2006-139 |
September 5, 2006 |
| IRS Announces User Fee for U.S. Residency Certification |
| The Internal Revenue Service will begin charging user fees for processing Form 8802, Application for United States Residency Certification, for all Form 8802 applications received with a postmark date on or after November 1, 2006. These fees were announced in Revenue Procedure 2006-35, which will be published in Internal Revenue Bulletin (IRB) 2006-37 dated Sept. 11, 2006. |
| IR-2006-138 |
September 1, 2006 |
| Additional Details for Directing Mail to IRS Chief Counsel |
| To ensure prompt delivery of mail to the Internal Revenue Service Office of Chief Counsel, the IRS is clarifying where different types of correspondence should be directed during the temporary closure of the main IRS building. |
| IR-2006-137 |
August 31, 2006 |
| IRS Announces Standard Amounts for Telephone Tax Refunds |
| The Internal Revenue Service today announced the standard amounts that most long-distance customers can use to figure their telephone tax refund. These amounts, which range from $30 to $60, will enable millions of individual taxpayers to request the telephone tax refund without having to dig through old phone bills. |
| IR-2006-136 |
August 29, 2006 |
| Delay in Effective Date for Regulations Under Section 403(b) |
| The Internal Revenue Service announced today that the general effective date for the regulations regarding section 403(b) arrangements that were proposed in 2004 (including the related controlled group regulations under section 414(c)) will be extended. |
| IR-2006-135 |
August 25, 2006 |
| IRS Announces Additional Postponement of Filing and Payment Deadline for Businesses in the Gulf Coast |
| As part of the continuing effort to assist victims of Hurricane Katrina, the Internal Revenue Service will grant to businesses in the Gulf Coast an additional postponement of filing and payment requirements. The deadline will be Oct. 16, 2006, which is the same deadline established earlier for certain individual income tax return filers. |
| IR-2006-134 |
August 25, 2006 |
| New Split-Refund Form Available for Public Comment |
| The Internal Revenue Service today announced a draft of Form 8888, Direct Deposit of Refund, the new form for taxpayers who opt to split their refunds among accounts, is now available for public comment. |
| IR-2006-133 |
August 24, 2006 |
| New IRS Publication Summarizes Tax Benefits to Hurricane Victims |
| In a continuing effort to assist victims of last year’s hurricanes, the IRS has issued a new publication summarizing the tax incentives to rebuild the Gulf Coast, which are valued at almost $9 billion. |
| IR-2006-132 |
August 23, 2006 |
| Simple Steps Can Prevent Tax Scams as Private Debt Collection Begins |
| As the Internal Revenue Service begins its private debt collection initiative, the tax agency reminds taxpayers there are several simple steps that can provide protection against scam artists. |
| IR-2006-131 |
August 23, 2006 |
| IRS Outlines Taxpayer Protections in Private Debt Collection Program |
| The Internal Revenue Service released legal guidance today outlining the protections in place for the new private debt collection program. The guidance, contained in Announcement 2006-63, describes the limited role private collection agencies (PCAs) may play in collecting back taxes and the legal restrictions and procedures in place to safeguard taxpayer privacy and taxpayer rights. |
| IR-2006-130 |
August 18, 2006 |
| Proposed Regulations Issued for Capitalization of Tangible Assets |
| The Treasury Department and the Internal Revenue Service issued proposed regulations that clarify the treatment of expenditures incurred in selling, acquiring, producing or improving tangible assets. If adopted as proposed, the regulations should reduce the amount of controversy between taxpayers and the IRS in this area. |
| IR-2006-129 |
August 18, 2006 |
| New Law Expands IRA Options for Military; Many Can Still Contribute for 2004 and 2005 |
| Members of the military serving in Iraq, Afghanistan and other combat zone localities can now put money into an individual retirement account, even if they received tax-free combat pay, according to the Internal Revenue Service. |
| IR-2006-128 |
August 17, 2006 |
| IRS Begins Outreach to Entertainment Industry on Gift Bags Following Academy Agreement |
| The Internal Revenue Service announced today the beginning of an outreach campaign to the entertainment industry regarding the taxability of gift bags and promotional items. The effort follows an agreement announced today between the tax agency and the Academy of Motion Picture Arts and Sciences. |
| IR-2006-127 |
August 16, 2006 |
| New Directors Named for LMSB |
| The Internal Revenue Service has announced five director-level appointments in its Large and Mid-Size Business (LMSB) division, which serves corporations, subchapter S corporations and partnerships with assets greater than $10 million. New directors were named for four of LMSB’s five industries as well as for LMSB’s Pre-Filing and Technical Guidance unit. These leadership changes followed other recent executive retirements, transfers and promotions within the IRS. |
| IR-2006-126 |
August 14, 2006 |
| Purchasers of Honda Hybrids Still Qualify for Tax Credit |
| The Internal Revenue Service announced that purchasers of qualified American Honda Motor Corp., Inc., vehicles may continue to claim the Alternative Motor Vehicle Credit. The announcement comes after the IRS concluded its second quarterly review of the number of hybrid vehicles sold. |
| IR-2006-125 |
August 14, 2006 |
| Purchasers of Ford and Mercury Hybrids Still Qualify for Tax Credit |
| The Internal Revenue Service announced that purchasers of qualifed Ford Motor Company vehicles may continue to claim the Alternative Motor Vehicle Credit. The announcement comes after the IRS concluded its second quarterly review of the number of hybrid vehicles sold. |
| IR-2006-124 |
August 10, 2006 |
| New Temporary Address for Certain Hand-Delivered Documents |
| Because of the closure of the main IRS Headquarters Building, there is a new temporary address for the delivery of taxpayer requests for rulings, requests for determination letters, Applications for Change in Accounting Method (Form 3115), and similar requests that are permitted to be hand-delivered to the main IRS building. |
| IR-2006-123 |
August 9, 2006 |
| New Temporary Procedure for Certain Expedited Ruling Requests |
| The Internal Revenue Service is updating its temporary procedure for processing requests for certain expedited letter rulings for reorganizations and section 355 distributions. The temporary procedure was put in place because flooding caused the temporary closure of the IRS headquarters building in Washington, D.C. |
| IR-2006-122 |
August 9, 2006 |
| Purchasers of GM Hybrids Still Qualify for Tax Credit |
| The Internal Revenue Service announced that purchasers of General Motors Corp. qualified vehicles may continue to claim the Alternative Motor Vehicle Credit. The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold. |
| IR-2006-121 |
August 3, 2006 |
| IRS, Canada Revenue Agency Unravel Cross-Border Tax Scheme |
| Officials of the Canada Revenue Agency and the United States Internal Revenue Service today announced significant progress in unraveling an abusive cross-border tax scheme. This effort stems from leads and information first developed by the Joint International Tax Shelter Information Centre (JITSIC). |
| IR-2006-120 |
August 1, 2006 |
| Everson Chairs International Tax Forum, Emphasizes Enforcement |
| IRS Commissioner Mark W. Everson has been elected chairman of the Forum on Tax Administration, a panel of national tax administrators that is part of the Paris-based Organization for Economic Co-operation and Development. |
| FS-2006-24 |
August 2006 |
| Third-Party Reporting Reminders |
| Underreported business income accounts for more than $100 billion per year in unpaid taxes, according to IRS estimates. In order to educate taxpayers regarding their filing obligations, this fact sheet, the third in a series, explains the rules pertaining to third-party payer reporting of income. |
| IR-2006-119 |
July 31, 2006 |
| IRS Launching Online Payment Agreement Application |
| Tax professionals are helping launch a new system that will allow many individuals who owe delinquent federal taxes to apply online for a payment agreement, the IRS announced today. |
| IR-2006-118 |
July 28, 2006 |
| IRS Announces New Tip Reporting Program |
| The Internal Revenue Service today released formal guidance on its new tip reporting procedure, the Attributed Tip Income Program (ATIP) ATIP expands the existing IRS tip reporting and education program by offering employers in the food and beverage industry an additional tip reporting program. ATIP reduces industry recordkeeping burdens, has simple enrollment requirements and promotes reporting tips on Federal income tax returns. |
| IR-2006-117 |
July 24, 2006 |
| E-file Available through October 16 |
| The Internal Revenue Service reminds taxpayers who previously filed an extension of time to file tax returns that they can electronically file (e-file) their returns until Oct. 16, 2006. |
| IR-2006-116 |
July 19, 2006 |
| Electronic Federal Tax Payment System Cited in New E-mail Scam |
| The Internal Revenue Service is warning taxpayers to be on the lookout for a new e-mail scam that uses the Treasury Department's Electronic Federal Tax Payment System (EFTPS) as a hook to lure individuals into disclosing their personal information. |
| IR-2006-115 |
July 20, 2006 |
| Purchasers of Honda Hybrids Still Qualify for Tax Credit |
| The Internal Revenue Service announced that purchasers of American Honda Motor Company, Inc., qualified vehicles may continue to claim the Alternative Motor Vehicle Credit. The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold. |
| IR-2006-114 |
July 20, 2006 |
| IRS Releases Final Draft Schedules M-3 for 2006 |
| The Internal Revenue Service today released final drafts of Schedules M-3 and Form 8916 for the 2006 tax year, and a new Form 8916-A, “Reconciliation of Cost of Goods Sold Reported on Schedule M-3.” The final draft Schedules M-3, dated 6/27/06, are for Forms 1120, 1120-L, 1120-PC, 1120S and 1065. Draft instructions for the forms were also released. |
| IR-2006-113 |
July 18, 2006 |
| IRS Issues Spring 2006 Statistics of Income Bulletin |
| The Internal Revenue Service today announced the release of the Spring 2006 issue of the Statistics of Income Bulletin. For the first time, the Bulletin takes a detailed look at individual noncash charitable contributions. |
| IR-2006-112 |
July 13, 2006 |
| Employer Cash Incentives for Hybrids Are Taxable |
| To encourage their employees to purchase environmentally friendly hybrid cars, several companies reportedly are offering “rebates” or cash incentives to their employees in select areas to offset the purchase price of these vehicles. Just like other forms of compensation, these cash incentives are taxable compensation. |
| IR-2006-111 |
July 13, 2006 |
| National Taxpayer Advocate Releases Report to Congress; Identifies Priority Issues for Upcoming Year |
| National Taxpayer Advocate Nina E. Olson today delivered a report to Congress that identifies the priority issues the Office of the Taxpayer Advocate will address in the coming fiscal year. These issues include the rules governing the use or disclosure of tax return information by return preparers, a recently imposed requirement that taxpayers submitting lump-sum offers in compromise make a down payment of 20 percent of the amount of the offer, IRS guidelines in evaluating “non-hardship effective tax administration” offers, and the importance of safeguarding taxpayer rights as the IRS rolls out its private debt collection initiative. Olson also released a report, presented as Volume II, that examines the role the IRS plays in facilitating the refund anticipation loan (RAL) industry, and makes recommendations to improve refund delivery to taxpayers, including the “unbanked.” |
| IR-2006-110 |
July 11, 2006 |
| GM’s 2007 Saturn Vue Green Line Certified for the New Energy Tax Credit |
| The Internal Revenue Service has acknowledged the certification by General Motors Corp. that its 2007 Saturn Vue Green Line vehicle qualifies for the Alternative Motor Vehicle Credit created by the Energy Policy Act of 2005. This certification is under IRS Notice 2006-9. The tax credit for hybrid vehicles applies to new vehicles placed in service on or after Jan. 1, 2006. |
| IR-2006-109 |
July 11, 2006 |
| Honda Vehicles Certified to Operate on Compressed Natural Gas |
| The Internal Revenue Service has acknowledged the certification by American Honda Motor Company, Inc., that two of its vehicles powered by compressed natural gas (CNG) meet the requirements of the Alterative Motor Vehicle Credit enacted by the Energy Policy Act of 2005. |
| IR-2006-108 |
July 11, 2006 |
| GM Vehicles Certified for the Alternative Vehicle Tax Credit |
| The Internal Revenue Service has acknowledged the certification by General Motors Corporation that several of its 2006 and 2007 vehicles qualify for the Alternative Motor Vehicle Credit created by the Energy Policy Act of 2005. The tax credit for hybrid vehicles applies to new vehicles placed in service on or after Jan. 1, 2006. |
| IR-2006-107 |
July 11, 2006 |
| IRS Headquarters Will Remain Closed for Months; Tax Administration Operations Continue As Employees Relocate |
| The Internal Revenue Service and General Services Administration announced today initial findings from GSA’s flood damage report on the IRS’s Headquarters Building at 1111 Constitution Ave. NW. According to the GSA assessment, complete building restoration won’t be complete until about the first of the year due to extensive damage the building’s infrastructure sustained during last month’s heavy rainfall. |
| IR-2006-106 |
July 11, 2006 |
| New Law Revamps IRS Offer in Compromise Program |
| Under a new federal law, taxpayers submitting new offers in compromise must make a 20 percent nonrefundable, up-front payment in many cases, the Internal Revenue Service announced today. |
| IR-2006-105 |
July 10, 2006 |
| Temporary Procedures for Certain Expedited Ruling Requests |
| Because of the flooding and temporary closure of the main Internal Revenue Service headquarters building in Washington, D.C., a special procedure for processing requests for certain expedited letter rulings for reorganizations and section 355 distributions has been established. |
| IR-2006-104 |
July 7, 2006 |
| IRS Renews E-mail Alert Following New Scams |
| Following a recent increase in scam e-mails, the Internal Revenue Service reminded taxpayers to be on the lookout for bogus e-mails claiming to be from the tax agency. |
| FS-2006-23 |
July 2006 |
| Cost of Goods Sold and the Tax Gap |
| The Internal Revenue Service issued Fact Sheet 2006-20, Business Income and the Tax Gap, as the first in a series of fact sheets aimed at educating the public about components of the Tax Gap. Fact Sheet 2006-20 provided an overview of the Tax Gap and discussed in depth one of its main contributing components: business income. |
| FS-2006-22 |
July 2006 |
| Revamped Offer in Compromise Program Plays New Role in Collection Process |
Effective July 16, 2006, a new federal law will change the way the offer in compromise (OIC) program operates and its role in the Internal Revenue Service collection process. In general, this means that:
- Taxpayers submitting lump-sum offers must make a 20 percent nonrefundable, up-front payment to the IRS;
- Taxpayers submitting a periodic-payment OIC must make a nonrefundable, up-front payment, plus any other proposed payments that may be due, while the IRS is evaluating the offer; and
- An OIC application is deemed accepted if the IRS fails to act upon it within two years.
|
| IR-2006-103 |
June 29, 2006 |
| Temporary Change of Address for Certain Hand-Delivered Documents |
| Because of the temporary closure of the main IRS Headquarters Building, there is a temporary change of address for the delivery of taxpayer requests for rulings, requests for determination letters, Applications for Change in Accounting Method (Form 3115), and similar requests that are permitted to be hand-delivered to the main IRS Headquarters Building. |
| IR-2006-102 |
June 29, 2006 |
| IRS Headquarters Building Remains Closed; Tax Operations Continue |
| The IRS Headquarters Building at 1111 Constitution Ave. NW in Washington is likely to remain closed for at least 30 days due to flooding and electrical outages. The building sustained extensive damage to the infrastructure, office furniture and supplies. |
| IR-2006-101 |
June 21, 2006 |
| Imhoff Named Deputy Chief, Criminal Investigation |
| The Internal Revenue Service appointed John Imhoff as the Deputy Chief, Criminal Investigation (CI). CI investigates potential criminal violations of the Internal Revenue Code and related financial crimes. CI is comprised of approximately 4,400 employees worldwide, approximately 2,800 of which are special agents whose investigative jurisdiction includes tax, money laundering and Bank Secrecy Act laws. |
| IR-2006-100 |
June 21, 2006 |
| Wagner Named Deputy Commissioner of the IRS Tax Exempt and Government Entities Division |
| The Internal Revenue Service today announced the appointment of Christopher Wagner as Deputy Commissioner of the Tax Exempt and Government Entities (TE/GE) Division. Prior to this assignment, Wagner was the Deputy National Taxpayer Advocate. |
| IR-2006-99 |
June 21, 2006 |
| IRS Selects Ng as LMSB’s Deputy Commissioner, International |
| The Internal Revenue Service selected Frank Y. Ng to fill the new position of Deputy Commissioner, Large and Mid-Size Business (International). Ng had been the acting Director, International, and prior to that he served as the Industry Director, Communications, Technology and Media in LMSB. |
| IR-2006-98 |
June 21, 2006 |
| Several 2007 Ford and Mercury Vehicles Certified for the New Energy Tax Credit |
| The Internal Revenue Service has acknowledged the certification by Ford Motor Company that several of its 2007 vehicles qualify for the Alternative Motor Vehicle Credit created by the Energy Policy Act of 2005. The tax credit for hybrid vehicles applies to vehicles purchased on or after Jan. 1, 2006, and could be as much as $3,400 for those who purchase the most fuel-efficient vehicles. |
| IR-2006-97 |
June 19, 2006 |
| IRS Issues Guidance to Hurricane Victims Claiming Casualty Losses; Safe Harbor Methods Available for Individuals |
| The IRS issued guidance today to assist Hurricane Katrina, Rita and Wilma victims claiming casualty and theft losses on their individual income tax returns. |
| IR-2006-96 |
June 19, 2006 |
| IRS Provides Additional Time to File Individual Tax Returns In Areas Hardest Hit by Katrina |
| The Internal Revenue Service is providing additional time to file 2004 and 2005 individual income tax returns through Oct. 16, 2006 for certain affected taxpayers hit hardest by Hurricane Katrina. |
| IR-2006-95 |
June 14, 2006 |
| IRS Plans Surveys to Improve Taxpayer Services |
| The Internal Revenue Service will survey nearly 50,000 people this month to help the agency improve the way it provides taxpayer services. |
| IR-2006-94 |
June 13, 2006 |
| IRS Commissioner Testifies before Senate Committee on Finance on Compliance Concerns Relative to Large and Mid-Size Businesses |
| Written Testimony of Commissioner of Internal Revenue Mark Everson, June 13, 2006 |
| IR-2006-93 |
June 8, 2006 |
| IRS Office of Taxpayer Burden Reduction Partners with Public to Make Complying with Tax Laws Easier |
| The Internal Revenue Service’s Office of Taxpayer Burden Reduction is soliciting recommendations from members of the public on ways to reduce taxpayer burden. Taxpayer burden is defined as the time and money taxpayers spend to comply with their federal tax obligations. An example of taxpayer burden could be the average time and expense required to complete and file a tax form. |
| IR-2006-92 |
June 7, 2006 |
| IRS Updates Information for Special Enrollment Examination |
| Internal Revenue Service officials today announced further details of the Special Enrollment Examination in 2006. |
| IR-2006-91 |
June 7, 2006 |
| Toyota and Lexus Sells Over 41,000 Hybrid Vehicles |
| The Internal Revenue Service announced that purchasers of Toyota Motor Sales USA qualified vehicles may continue to claim the Alternative Motor Vehicle Credit. The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold. |
| IR-2006-90 |
June 7, 2006 |
| Ford and Mercury Sell Over 6,100 Hybrid Vehicles |
| The Internal Revenue Service announced that purchasers of Ford Motor Company qualified vehicles may continue to claim the Alternative Motor Vehicle Credit. The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold. |
| IR-2006-89 |
June 5, 2006 |
| Interest Rates Rise for the Third Quarter of 2006 |
| The Internal Revenue Service today announced there will be an increase in the interest rates for the calendar quarter beginning July 1, 2006. Each of these interest rates increases by a single interest point over the rate in the second quarter. |
| IR-2006-88 |
June 2, 2006 |
| IRS Unveils Procedure Enabling Commercial Property Owners to Qualify for Energy Efficiency Deduction |
| The Internal Revenue Service today issued an advance copy of a notice on how commercial building owners or leaseholders can qualify for the tax deduction for making their building energy efficient. The notice establishes a process to certify the required energy savings in order to claim the deduction. |
| IR-2006-87 |
June 1, 2006 |
| IRS Reminds Charities to Avoid Campaign Activities This Election Season |
| This election season the Internal Revenue Service reminds charities to avoid becoming involved in political campaign activities. In the 2004 elections, the IRS noticed an upturn in politicking on the part of 501(c)(3) organizations. The agency responded by increasing its educational efforts and launching an enforcement program, the Political Activity Compliance Initiative (PACI), to investigate specific, credible allegations of wrongdoing. |
| IR-2006-86 |
June 1, 2006 |
| Seven Honda Vehicles Certified for New Energy Tax Credit |
| The Internal Revenue Service has acknowledged the certification by American Honda Motor Company, Inc. that several of its vehicles meet the requirements of the Alternative Motor Vehicle Credit as a qualified hybrid motor vehicle. The tax credit for hybrid vehicles applies to vehicles purchased on or after Jan. 1, 2006, and could be as much as $3,400 for those who purchase the most fuel-efficient vehicles. |
| FS-2006-21 |
June 2006 |
| IRS Reminds Businesses to Classify Workers Correctly |
| The rash of natural disasters that have hit the United States in the last several months have caused many businesses to hire additional workers to help them meet increased demand for their goods or services. These businesses must make sure they treat their workers properly to make sure everyone can meet their tax obligations. |
| FS-2006-20 |
June 2006 |
| Business Income and the Tax Gap |
| The Internal Revenue Service recently completed a National Research Program (NRP) reporting compliance study of individual taxpayers for tax year 2001. The study involved random selection of about 46,000 returns for review. The examinations generally concluded in the fall of 2004. |
| IR-2006-85 |
May 31, 2006 |
| IRS Expands Taxpayers’ Options for Direct Deposit of Refunds |
| Hoping to encourage higher savings and more banking, the Internal Revenue Service announced today that it will create a new program to allow taxpayers who use direct deposit to divide their refunds in up to three financial accounts. The IRS will create a new form, Form 8888, which will give taxpayers greater control over their refunds. Form 8888 will give taxpayers a choice of selecting one, two or three accounts such as checking, savings and retirement account. Taxpayers who want all their refund deposited directly into one account can still use the appropriate line on the Form 1040 series. |
| IR-2006-84 |
May 31, 2006 |
| IRS e-file Moves Forward; Successfully Executes Electronic Filing of Nation’s Largest Tax Return |
| The Internal Revenue Service today announced significant progress in its corporate e-file program, including the successful May 18, 2006 e-filing of the nation’s largest tax return from General Electric (GE). On paper, GE’s e-filed return would have been approximately 24,000 pages long. After filing, GE received IRS’ acknowledgement of its filing in about an hour. The file was 237 megabytes. |
| IR-2006-83 |
May 26, 2006 |
| IRS Eases Reporting Burden on Corporations and Shareholders |
| The Internal Revenue Service today announced new regulatory revisions that will reduce the reporting burden on corporations and shareholders while also making it easier for them to file their tax returns electronically. |
| IR-2006-82 |
May 25, 2006 |
| Government to Stop Collecting Long-Distance Telephone Tax |
| The Internal Revenue Service today announced that it will stop collecting the federal excise tax on long-distance telephone service. The tax on telephone services was first imposed in 1898. The current rate is 3% of the charges billed for these services. The IRS announcement follows decisions in five federal appeals courts holding that the tax does not apply to long-distance service as it is billed today. |
| IR-2006-81 |
May 23, 2006 |
| Tax Exempt and Government Entities Advisory Committee to Hold Public Meeting |
| The Internal Revenue Service’s Advisory Committee on Tax Exempt and Government Entities (ACT) will hold a public meeting June 7, 2006, at 9 a.m. at 1111 Constitution Ave., N.W., Washington, D.C. |
| IR-2006-80 |
May 15, 2006 |
| IRS Takes New Steps on Credit Counseling Groups Following Widespread Abuse |
| Internal Revenue Service officials today released a report on tax-exempt credit counseling agencies and announced further steps to ensure these organizations comply with the law. Over the past two years, the IRS has been auditing 63 credit counseling agencies, representing more than half of the revenue in the industry. To date, the audits of 41 organizations, representing more than 40 percent of the revenue in the industry, have been completed. All of the completed audits have resulted in revocation, proposed revocation or other termination of tax-exempt status. |
| IR-2006-79 |
May 15, 2006 |
| IRS Seeks Nominations for Internal Revenue Service Advisory Council |
| The Internal Revenue Service is requesting nominations for the Internal Revenue Service Advisory Council (IRSAC). Applications will be accepted from June 1 through July 31, 2006. IRSAC’s primary purpose is to provide an organized public forum for IRS officials and representatives of the public to discuss relevant tax administration issues. The group suggests operational improvements, offers constructive observations about IRS’ current or proposed policies, programs and procedures, and advises the IRS on particular issues having substantive impact on federal tax administration. |
| IR-2006-78 |
May 11, 2006 |
| IRS Offers Continuing Education Credits for Certified Financial Planners at Nationwide Tax Forums |
| The Internal Revenue Service announced that it has reached an agreement with the Certified Financial Planner Board of Standards to give continuing education credits at the IRS Nationwide Tax Forums held this summer. This is the first year that the IRS has registered as a continuing education sponsor for certified financial planners. The IRS is already a continuing education sponsor for enrolled agents and certified public accountants. |
| IR-2006-77 |
May 8, 2006 |
| IRS Accepting Applications for Low Income Taxpayer Clinic Matching Grants |
| The National Taxpayer Advocate, Nina E. Olson, today announced that the 2007 Low Income Taxpayer Clinic (LITC) grant application process is now open. The LITC grant program is now in its eighth year and continues to expand. |
| IR-2006-76 |
May 5, 2006 |
| Lewis J. Fernandez Named Associate Chief Counsel, Income Tax and Accounting |
| The Internal Revenue Service announced the assignment of Lewis J. Fernandez to the position of Associate Chief Counsel, Income Tax and Accounting, effective July 2, 2006. He will replace Robert M. Brown, who is retiring. |
| Korb Remarks |
May 5, 2006 |
| Remarks of IRS Chief Counsel Donald L. Korb at the May 2006 American Bar Association Section of Taxation Meeting |
| "Case Specific Legal Advice: Adapting the Process to the Service’s Changed Business Practices" |
| IR-2006-75 |
May 5, 2006 |
| IRS Updates Voluntary Correction Program for Retirement Plan Professionals |
| The Internal Revenue Service today issued an updated and expanded revision of a revenue procedure governing its popular voluntary correction program for employee retirement plans – the Employee Plans Compliance Resolution System, or EPCRS. Under EPCRS, plan sponsors and other plan professionals can correct certain errors in employee retirement plans, in some cases without even having to notify the IRS. Correcting plans in this way allows participants to continue receiving tax-favored retirement benefits and protects the retirement benefits of employees and retirees. |
| IR-2006-74 |
May 4, 2006 |
| IRS Targets Down-Payment-Assistance Scams; Seller-Funded Programs Do Not Qualify As Tax Exempt |
| Organizations that provide seller-funded down-payment assistance to home buyers do not qualify as tax-exempt charities, the Internal Revenue Service said in a ruling released today. |
| IR-2006-73 |
May 2, 2006 |
| IRS Reminds Large Tax-Exempt Organizations of May 15 e-file Deadline |
| The Internal Revenue Service today reminded large tax-exempt organizations of the May 15 deadline to electronically file federal information returns, including Form 990. For the first time, exempt organizations are required to file these returns electronically if they have $100 million in total assets and file at least 250 returns per year –– including income, excise, employment tax and information returns such as forms W-2 and 1099. |
| IR-2006-72 |
May 1, 2006 |
| IRS Seeks Nominations for Information Reporting Program Advisory Committee |
| The Internal Revenue Service is requesting membership nominations for the Information Reporting Program Advisory Committee (IRPAC). The deadline for submitting applications is July 14, 2006. |
| FS-2006-19 |
May 2006 |
| IRS Encourages Taxpayers to Safeguard Financial and Tax Records During Hurricane Preparedness Week |
| With the approach of hurricane season, the Internal Revenue Service encourages taxpayers to safeguard their records as part of National Hurricane Preparedness Week, May 21-27. Some simple steps can help taxpayers and businesses protect financial and tax records in case of hurricanes and other disasters. |
| IR-2006-71 |
April 28,, 2006 |
| IRS Releases Draft Instructions for Schedules M-3 |
| The Internal Revenue Service today released updated draft instructions for Schedules M-3 for the 2006 tax year and an updated draft of the new Form 8916 that will be filed by certain insurance-related corporations to reconcile taxable income. |
| IR-2006-70 |
April 27, 2006 |
| IRS and States Join Forces to Combat Money Laundering |
| The Internal Revenue Service announced today agreements with 33 states and Puerto Rico to begin sharing Bank Secrecy Act (BSA) information. The agreements will allow the IRS and the participating states to share information and leverage their resources to ensure that money services businesses (MSBs) are complying with their federal and state responsibilities to register with the government and report cash transactions and suspicious activities. |
| IR-2006-69 |
April 26, 2006 |
| IRS Names New Members to TE/GE Advisory Group |
| The Internal Revenue Service today announced the selection of eight new members for the Advisory Committee on Tax Exempt and Government Entities (ACT). The ACT is a formal body of external stakeholders in the specialized areas of employee retirement plans, exempt organizations, tax-exempt bonds and federal, state, local and Indian tribal governments. The appointees, who will assume their duties in June, will join 13 returning committee members. They are listed below by area of expertise. |
| IR-2006-68 |
April 25, 2006 |
| 2006 Tax Filing Season Sets Records |
| The Internal Revenue Service announced today the recently completed 2006 filing season set a series of records, highlighted by 70 million tax returns being filed electronically this year and home computer usage jumping 18 percent. |
| IR-2006-67 |
April 25, 2006 |
| Toyota and Lexus Vehicles Certified for New Energy Tax Credit |
| The Internal Revenue Service has acknowledged the certification by Toyota Motor Sales U.S.A., Inc. that the Toyota Camry Hybrid and Lexus GS 450h Model Year 2007 vehicles qualify for the hybrid tax credit enacted by the Energy Policy Act of 2005. The tax credit for hybrid vehicles applies to vehicles purchased on or after January 1, 2006, and may be as much as $3,400 for those who purchase the most fuel-efficient vehicles. |
| IR-2006-66 |
April 19, 2006 |
| IRS Web Site Sets Records on April 17 |
| Taxpayers used the Internal Revenue Service Web site at record levels as the filing deadline approached earlier this week. On April 17, there were 3,385,936 visits to IRS.gov. This number beats the prior single-day record of 3,337,300 visits on April 15, 2005. |
| IR-2006-65 |
April 17, 2006 |
| IRS Announces Kathy Petronchak Appointed Chief of Staff |
| The Internal Revenue Service today announced Kathy Petronchak has been appointed to the position of Chief of Staff. Petronchak will replace the current Chief of Staff, Evelyn Petschek, effective June 7. |
| IR-2006-64 |
April 14, 2006 |
| On-Line Filing Sets New Record; More than 17 Million Returns e-Filed by Home Computer Users |
| Computer users are preparing and filing their income tax returns electronically in record numbers, according to the Internal Revenue Service. As of Thursday, April 13, the IRS had received a total of 17,629,831 e-filed returns from computer users, surpassing last year’s yearlong total of 17,100,353 returns. Compared to the same period last year, on-line filing is up 15 percent. |
| IR-2006-63 |
April 14, 2006 |
| Two Key Appointments Announced by Chief Counsel |
| Steven Musher has been appointed Internal Revenue Service Associate Chief Counsel, International, and Christopher Sterner has been appointed Division Counsel (Large and Mid-Size Business). The assignments are effective April 16, 2006.
|
| IR-2006-62 |
April 14, 2006 |
| IRS Awards $8 Million to Tax Clinics Aiding Low Income Taxpayers |
| The National Taxpayer Advocate, Nina E. Olson, announced that the Internal Revenue Service has awarded $8 million in matching grants to Low Income Taxpayer Clinics (LITCs) for the 2006 grant cycle (Jan. 1, 2006, through Dec. 31, 2006). LITCs are qualifying organizations that represent low income taxpayers involved in tax disputes with the IRS or that provide education on tax rights and responsibilities to taxpayers for whom English is a second language or who have limited English proficiency. For more details about the languages in addition to English served by LITCs, see Publication 4134, Low Income Taxpayer Clinic List. |
| IR-2006-61 |
April 13, 2006 |
| IRS Announces Changes to 2006 Special Enrollment Examination |
| Internal Revenue Service officials today announced changes to the Special Enrollment Examination in 2006. A private firm, Thomson Prometric, a nationwide testing firm, has been selected to develop and administer a computer-based version of the exam on behalf of the IRS. |
| IR-2006-60 |
April 12, 2006 |
| IRS Urges Taxpayers to e-file Extension Requests |
| The IRS urges taxpayers who need more time to complete their tax returns to e-file their extensions. E-filing an extension is convenient, safe and secure, and taxpayers receive confirmation to keep with their records. |
| IR-2006-59 |
April 11, 2006 |
| IRS Announces Appointment of Sarah Hall Ingram as Chief, Appeals |
| The Internal Revenue Service today announced that Sarah Hall Ingram has been appointed to the position of Chief, Appeals. Ingram will replace David Robison, effective May 7. |
| IR-2006-58 |
April 10, 2006 |
| Taxpayers Can Request an Automatic Six-Month Tax Filing Extension |
| The Internal Revenue Service reminds individual taxpayers that they can request an automatic six-month filing extension. An extension grants extra time for filing the tax return only, not for paying any taxes due. Taxpayers will owe interest on any past due tax and may be subject to a late payment penalty if payment is not made by the original due date of the return. |
| IR-2006-57 |
April 7, 2006 |
| Some Toyota and Lexus Vehicles Certified for the New Energy Tax Credit |
| The Internal Revenue Service has acknowledged the certification by Toyota Motor Sales U.S.A., Inc. that several of its 2006 vehicles and a 2005 model year vehicle qualify for the hybrid tax credit enacted by the Energy Policy Act of 2005. The tax credit for hybrid vehicles applies to vehicles purchased on or after January 1, 2006, and may be as much as $3,400 for those who purchase the most fuel-efficient vehicles. |
| IR-2006-56 |
April 7, 2006 |
| Some Ford and Mercury Vehicles Certified for the New Energy Tax Credit |
| The Internal Revenue Service has acknowledged the certification by Ford Motor Company that several of its 2006 vehicles qualify for the hybrid tax credit enacted by the Energy Policy Act of 2005. The tax credit for hybrid vehicles applies to vehicles purchased on or after January 1, 2006, and may be as much as $3,400 for those who purchase the most fuel-efficient vehicles. |
| IR-2006-55 |
April 7, 2006 |
| Winter 2005-2006 Statistics of Income Bulletin |
| The Internal Revenue Service today announced the release of the Winter 2005-2006 issue of the Statistics of Income Bulletin. The SOI Bulletin includes an article on preliminary data from individual income tax returns for 2004. In 2004, Adjusted Gross Income (AGI) rose for the second year in a row, increasing by 8.9 percent to $6.8 trillion. The largest component of AGI, salaries and wages, increased 6.0 percent to $4,977.9 billion, while net capital gains rose 53.2 percent to $442.1 billion. Taxable income increased 10.6 percent to $4.6 trillion. |
| IR-2006-54 |
April 6, 2006 |
| Applicants for Electronic Tax Advisory Committee Sought |
| The Internal Revenue Service invites applicants to fill six vacancies on the Electronic Tax Administration Advisory Committee (ETAAC) beginning in September 2006. |
| IR-2006-53 |
April 6, 2006 |
| More Taxpayers are Choosing e-file and Direct Deposit in 2006 |
| The Internal Revenue Service announced today that taxpayers are continuing to e-file in greater numbers than ever before. As of March 31, 2006, the IRS had received almost 54 million tax returns through e-file, up from 52 million returns for the same period last year, an increase of more than 3 percent. |
| IR-2006-52 |
April 5, 2006 |
| "Where’s My Refund" Usage at Record Pace |
| The Internal Revenue Service announced that more people than ever are using “Where’s My Refund,” the popular Internet-based service used by taxpayers to check on their federal income tax refunds. |
| IR-2006-51 |
April 5, 2006 |
| IRS Releases Draft Schedules M-3 for 2006 |
| The Internal Revenue Service today released updated drafts of Schedules M-3 for the 2006 tax year and a new Form 8916 that will be filed by certain insurance-related corporations to reconcile taxable income reported on their Schedules M-3 with taxable income reported on their tax returns. |
| IR-2006-50 |
March 31, 2006 |
| In 2006, More People Are Choosing IRS e-file |
| The Internal Revenue Service announced today that taxpayers are continuing to e-file in greater numbers than ever before. As of March 24, 2006, the IRS had received more than 50 million tax returns through e-file, an increase of almost 3 percent compared to the same period last year. |
| IR-2006-49 |
March 27, 2006 |
| IRS Establishes e-Mail Box for Taxpayers to Report Phony e-Mails |
| The Internal Revenue Service announced today that it has established an electronic mailbox for taxpayers to send information about suspicious e-mails they receive which claim to come from the IRS. Taxpayers should send the information to: phishing@irs.gov. |
| IR-2006-48 |
March 23, 2006 |
| IRS Invites Taxpayers to Apply for Taxpayer Panel |
| The Internal Revenue Service is inviting civic-minded individuals to help improve the nation’s tax agency by applying to be members of the Taxpayer Advocacy Panel. The panel provides a forum for citizens from each state to make suggestions regarding IRS decision making. |
| IR-2006-47 |
March 22, 2006 |
| Home Computer Filing Shows Strong Growth in 2006 |
| The Internal Revenue Service announced today that taxpayers are continuing to e-file from home computers at a record pace, up almost 17 percent from the same period last year. “People using tax preparation software is driving the increase in e-filing,” said IRS Commissioner Mark W. Everson. “Taxpayers can rely on e-file as a safe, accurate way to quickly finish their taxes and get a refund.” |
| IR-2006-46 |
March 17, 2006 |
| 2005 Data Book Details Rise in Audits |
| The Internal Revenue Service announced today that the 2005 IRS Data Book is available at IRS.gov. The publication contains tables detailing, among other subjects, the amount of revenue collected, the number of audits (examinations) conducted, and the number of refunds issued between October 1, 2004, and September 30, 2005 – Fiscal Year 2005. |
| IR-2006-45 |
March 16, 2006 |
| IRS Debunks Frivolous Arguments on Paying Taxes |
| The Internal Revenue Service today issued updated guidance describing and rebutting frivolous arguments taxpayers should avoid when filing their tax returns. “Taxpayers need to avoid being taken in by groundless theories suggesting that they don’t have to pay taxes or file returns,” said IRS Commissioner Mark W. Everson. “The truth about these frivolous arguments is simple: They don’t work.” |
| IR-2006-44 |
March 15, 2006 |
| IRS e-file and Direct Deposit Outpace Last Year's Results |
| The Internal Revenue Service announced today that taxpayers are continuing to e-file at a record pace. The biggest increase is in returns e-filed from home computers, up almost 17 percent over last year’s figure. |
| IR-2006-43 |
March 13, 2006 |
| IRS Works With Associations to Help Hurricane-Affected Taxpayers |
| The Internal Revenue Service announced today an agreement with two tax professional associations to assist taxpayers impacted by Hurricanes Katrina, Rita and Wilma. |
| IR-2006-42 |
March 9, 2006 |
| IRS Selects Three Firms to Take Part in Delinquent Tax Collection Effort |
| The Internal Revenue Service today awarded contracts to three firms to participate in the first phase of its private debt collection initiative. |
| IR-2006-41 |
March 9, 2006 |
| No Change in Interest Rates for the Second Quarter of 2006 |
| The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning April 1, 2006. The interest rates are as follows: |
| IR-2006-40 |
March 8, 2006 |
| Nation’s Large Corporations File Taxes Electronically |
| The Internal Revenue Service today announced that more than 450 of the nation’s largest corporations have electronically filed taxes in advance of the March 15 filing date. Large corporate taxpayers, those with $50 million or more in assets that file at least 250 returns, are required to e-file this year. |
| IR-2006-39 |
March 7, 2006 |
| More Taxpayers E-filing than Ever Before |
| In the first release of tax filing statistics this year, the Internal Revenue Service announced today that electronically filed returns have increased, led by a big increase in home computer use. |
| IR-2006-38 |
March 2, 2006 |
| IRS Encourages Businesses to Submit Tax Issues for Resolution Program |
| Business taxpayers and associations may seek resolution of problematic tax issues through the Internal Revenue Service’s Industry Issue Resolution (IIR) Program. Submissions received by March 31, 2006, of business tax issues where the tax treatment is uncertain, frequently disputed or burdensome will be considered for IIR project selection and inclusion in the 2006-2007 Treasury and IRS Guidance Priority List. |
| FS-2006-18 |
March 2006 |
| Safeguards Included in Private Debt Collection Initiative |
| The IRS has a variety of safeguards in place to protect taxpayers as the private debt collection initiative moves forward: |
| IR-2006-37 |
Feb. 27, 2006 |
| Patriot’s Day Gives Some Taxpayers an Extra Day to File and Pay Taxes |
| Individuals in six eastern states and the District of Columbia will have an extra day, until April 18, 2006, to file returns and pay any taxes due, according to the Internal Revenue Service. |
| IR-2006-36 |
Feb. 24, 2006 |
| IRS Releases New Guidance and Results of Political Intervention Examinations |
| Internal Revenue Service officials today released a report on the agency’s examination of political activity by tax-exempt organizations during the 2004 election campaign. In connection with the report, the IRS is also unveiling new procedures today for the 2006 election season, which provide additional guidance to charities regarding political activities. |
| IR-2006-35 |
Feb. 23, 2006 |
| IRS Clarifies Information Reporting of Tobacco Payments |
| The Internal Revenue Service is clarifying the information reporting requirements for payments made to owners of tobacco quotas in exchange for the termination of the quotas. |
| IR-2006-34 |
Feb. 21, 2006 |
| Treasury and IRS Provide Guidance for Energy Credits for Homeowners |
| The Treasury Department and the IRS today have issued guidance (Notice 2006-26) on the certification that homeowners may rely on when they claim credits for purchases that make their homes more efficient. |
| IR-2006-33 |
Feb. 21, 2006 |
| Treasury and IRS Issue Guidance for Coal Project Credit and Gasification Project Credit |
| The Treasury Department and the IRS today issued guidance for two credits created by the Energy Policy Act of 2005 – the advanced coal project credit and the gasification project credit. Each credit will be allocated by the IRS among applicants certified by the Department of Energy (DOE). |
| IR-2006-32 |
Feb 21, 2006 |
| Treasury and IRS Provide Guidance on Energy Credit To Home Builders |
| The Internal Revenue Service today provided guidance regarding the energy efficient homes credit available under the Energy Policy Act of 2005. Under the new provision, an eligible contractor who constructs a qualified new energy efficient home may qualify for a credit of up to $2,000. The credit is available for all new homes, including manufactured homes constructed in accordance with the Federal Manufactured Homes Construction and Safety Standards. |
| IR-2006-31 |
Feb. 21, 2006 |
| IRS Has $2 Billion for People Who Have Not Filed a 2002 Tax Return |
| Unclaimed refunds totaling more than $2 billion are awaiting about 1.7 million people who failed to file a federal income tax return for 2002, the Internal Revenue Service announced today. However, in order to collect the money, a return for 2002 must be filed with an IRS office no later than April 17, 2006. |
| IR-2006-30 |
Feb. 17, 2006 |
| IRS Postpones Taxpayer Deadlines in Areas Hit Hardest by Katrina |
| The Internal Revenue Service is postponing taxpayer filing and payment deadlines for affected taxpayers hit hardest by Hurricane Katrina. Individual and business taxpayers in the most severely damaged parishes and counties of Louisiana and Mississippi automatically have through August 28, 2006, to file returns and make certain tax payments that had a due date or extended due date on or after August 29, 2005, and on or before August 28, 2006. In addition, the failure to deposit penalty will be waived for taxpayers in these areas who are unable to make their deposits during this time period. |
| IR-2006-29 |
Feb. 16, 2006 |
| IRS Streamlines Extension of Time to File for Business Taxpayers |
| The Internal Revenue Service has simplified the process for business taxpayers filing for an extension. All business taxpayers who previously filed extension forms 8800, 8736, 7004 and 2758 will now only need to file the revised Form 7004, "Application for Automatic 6-Month Extension of Time to File Certain Business Income Tax, Information, and Other Returns,” to request an automatic extension of time to file. The revised Form 7004 grants taxpayers an automatic six-month extension without the need to file intervening forms. |
| IR-2006-28 |
Feb. 14, 2006 |
| IRS Updates Tax Gap Estimates |
| Internal Revenue Service officials announced today that they have updated their estimates of the Tax Year 2001 tax gap based on the National Research Program (NRP). The updated estimate of the overall gross tax gap for Tax Year 2001 – the difference between what taxpayers should have paid and what they actually paid on a timely basis – comes to $345 billion. This figure falls at the high end of the range of $312 billion to $353 billion per year, an estimate released last March. |
| IR-2006-27 |
Feb. 10, 2006 |
| Hurricane Victims Have More Time to Claim Losses on Prior Year Returns |
| Victims of Hurricanes Katrina, Rita or Wilma wishing to claim disaster-related losses on their prior year federal income tax return will have until October 16, 2006, to make this choice, the Internal Revenue Service announced today. |
| IR-2006-26 |
Feb. 8, 2006 |
| IRS Certifies 2006 Toyota Prius Hybrid Vehicle for 2005 Deduction |
| The Internal Revenue Service has certified the model year 2006 Toyota Prius Hybrid for the clean fuel vehicle deduction. This certification means that taxpayers who purchased a 2006 Toyota Prius new during calendar year 2005 may claim a tax deduction of up to $2,000 on line 36 of Form 1040. |
| IR-2006-25 |
Feb. 7, 2006 |
| IRS Announces “Dirty Dozen” Tax Scams for 2006 |
| The Internal Revenue Service today issued the 2006 “Dirty Dozen”––its latest annual tally of some of the most notorious tax scams––along with an alert to taxpayers this filing season to watch out for schemes that promise to reduce or eliminate taxes. |
| IR-2006-24 |
Feb. 6, 2006 |
| New Steps Taken to Improve Questionable Refund Program |
| The Internal Revenue Service today announced new steps to improve the Questionable Refund Program (QRP) and reduce the number of taxpayers subject to frozen refunds. |
| IR-2006-23 |
Feb. 3, 2006 |
| IRS to Host Six Tax Forums This Year |
| The Internal Revenue Service will host a series of six tax forums across the nation this summer for the benefit of tax professionals, the IRS announced today. |
| IR-2006-22 |
Feb. 3, 2006 |
| Treasury and IRS Revise Circular 230 for Tax Professionals |
| The Treasury Department and the Internal Revenue Service today issued a notice proposing amendments to Treasury Department Circular 230. This provision governs tax professionals who practice before the IRS. Ensuring that tax professionals adhere to professional standards and follow the law is one of the top four enforcement goals for the IRS. This proposed revision of Circular 230 plays a critical part in achieving this goal. |
| FS-2006-17 |
February 2006 |
| Election Year Activities and the Prohibition on Political Campaign Intervention for Section 501(c)(3) Organizations |
| The Internal Revenue Service (IRS) is releasing this fact sheet to provide information to help section 501(c)(3) organizations stay in compliance with the federal tax law. Many of the types of political intervention activities addressed in the fact sheet were those that came under scrutiny during the 2004 election cycle. The contents reflect the IRS interpretation of tax laws enacted by Congress, Treasury regulations, and court decisions. The information is not comprehensive, however, and does not cover every situation. Thus, it is not intended to replace the law or be the sole source of information. The resolution of any particular issue may depend on the specific facts and circumstances of a given taxpayer. |
| FS-2006-16 |
February 2006 |
| Tax Return Preparer Fraud |
| Return preparer fraud generally involves the preparation and filing of false income tax returns by preparers who claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns prepared for their clients. Preparers may also manipulate income figures to obtain tax credits, such as the Earned Income Tax Credit, fraudulently. |
| IR-2006-21 |
Jan. 26, 2006 |
| Online Tool Helps Hurricane Victims with New EITC and ACTC Rules |
| Special rules for victims of Hurricanes Katrina, Rita and Wilma will ease the eligibility requirements for the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC), allowing people more options to qualify for substantial tax refunds. The Internal Revenue Service has created a special online tool to assist taxpayers. |
| IR-2006-20 |
Jan. 26, 2006 |
| IRS Tools Help Tax Professionals Prepare Accurate EITC Claims |
| The Internal Revenue Service today reminded tax professionals that they can help clients receive critical tax relief from the Earned Income Tax Credit and there are IRS tools to help them prepare accurate EITC claims. |
| IR-2006-19 |
Jan. 24, 2006 |
| Commissioner Everson Calls for Improvements to Refund Fraud Program |
| IRS Commissioner Mark W. Everson today announced that he has directed a review of the Questionable Refund Program, which will include notification procedures pertaining to frozen refunds. "We will announce plans in the very near future to institute notification procedures as well as significant processing improvements to minimize the number of taxpayers whose refunds are frozen unnecessarily," Everson said in announcing the review. |
| IR-2006-18 |
Jan. 24, 2006 |
| New Publication Explains Tax Law Changes Related to Recent Hurricanes |
| The IRS has issued a new publication today explaining changes to the tax law and relief provisions available to those affected by Hurricanes Katrina, Rita and Wilma. Publication 4492, Information for Taxpayers Affected by Hurricanes Katrina, Rita, and Wilma, is available on IRS.gov and paper copies will be available in about two weeks. |
| IR-2006-17 |
Jan. 19, 2006 |
| IRS Selects Seven New Members for Information Reporting Program Advisory Committee |
| The Internal Revenue Service announced the selection of seven new members for the Information Reporting Program Advisory Committee (IRPAC). The appointees will join eight returning members, who are in the second year of a three-year term. |
| IR-2006-16 |
Jan. 18, 2006 |
| Certain Tax Returns Go to Different Centers than Last Year |
| As taxpayers begin to prepare their tax returns, the Internal Revenue Service notes that some may be sending their returns to a different service center than last year. Those who received a tax instruction booklet from the IRS in the mail and use the labels included with the booklet can be assured that their tax returns will go to the correct address. Taxpayers who e-file are not affected by these changes. |
| IR-2006-15 |
Jan. 18, 2006 |
| Free File Opens Today with Enhanced Taxpayer Services |
| The Internal Revenue Service and its private-sector partners today announced the opening of Free File, the free tax preparation and free electronic filing initiative that marks its fourth year. More than 70 percent of the nation’s taxpayers – more than 92 million people - qualify for Free File this year. |
| IR-2006-14 |
Jan. 17, 2006 |
| Tax Law Changes Delay e-file for a Small Number of 2005 Forms |
| Following new tax law legislation enacted late in the year, the Internal Revenue Service announced today that e-file availability for a small number of 2005 tax forms will be delayed until later this month. The late tax law changes mean that 13 forms will not be available for e-file until the end of January. None of the most commonly used forms are affected by the delay, and 114 other forms remain available for e-filing. |
| IR-2006-13 |
Jan. 13, 2006 |
| IRS Settlement Deadline Approaches |
| Internal Revenue Service officials today reminded taxpayers that they have until Jan. 23, 2006 to file an election to take part in the global settlement program. There will be no deadline extension. |
| IR-2006-12 |
Jan. 13, 2006 |
| IRS and Treasury Provide Guidance to Hybrid Manufacturers |
| Today the IRS and Treasury have provided guidance on a process that manufacturers can use to certify the amount of credit the purchaser of a hybrid or lean burn vehicle can claim. Taxpayers who are purchasing these vehicles will be able to rely on the manufacturer’s certification when they claim the credit on their tax return. |
| IR-2006-11 |
Jan. 12, 2006 |
| IRS Revises Schedule K-1 for Trusts |
| The Internal Revenue Service today announced the availability of the revised Form 1041 Schedule K-1 for this year’s filing season. The schedule has been simplified to reduce common errors and the burden associated with preparation and filing requirements. |
| IR-2006-10 |
Jan. 12, 2006 |
| IRS e-file Marks its 20th Year; Electronic IRS Makes Debut |
| Taxpayers may file their 2005 tax returns electronically beginning January 13 as IRS e-file celebrates its 20th anniversary as one of the most successful and popular electronic financial programs in the world and the cornerstone of Internal Revenue Service’s modernization efforts. |
| IR-2006-09 |
Jan. 10, 2006 |
| National Taxpayer Advocate Releases 2005 Report to Congress; Stresses Need for Fundamental Tax Simplification |
| National Taxpayer Advocate Nina E. Olson today released a report to Congress that urges Congress to enact fundamental tax simplification. |
| IR-2006-08 |
Jan. 9, 2006 |
| IRS and Telemundo Host Tax Information Program for Spanish-Speaking Taxpayers |
| The Internal Revenue Service is joining national television network Telemundo in a special one-hour tax program for Spanish-speaking taxpayers on Sunday, Jan. 15. The program, “Los Impuestos y Usted” (“Taxes and You”), will air at 3:30 p.m. Eastern and Pacific Time, and at 2:30 p.m. Central and Mountain Time. |
| IR-2006-07 |
Jan. 6, 2006 |
| New Rules Outlined for ITIN Acceptance Agents |
| The Internal Revenue Service announced new rules effective Jan. 9, 2006 for people who participate in the Individual Taxpayer Identification Number (ITIN) Acceptance Agent program. |
| IR-2006-06 |
Jan. 6, 2006 |
| IRS and Treasury Change Reporting for Certain Transactions with Significant Book-Tax Differences |
| Internal Revenue Service and Treasury officials announced today the elimination of a class of reportable transactions involving significant book-tax differences. Officials took this action after a new return schedule for large businesses made separate reporting unnecessary, while continuing to ensure that these transactions will come to the attention of the IRS. |
| IR-2006-05 |
Jan. 5, 2006 |
| IRS Announces Additional Agreements to Assist Disaster Victims |
| The Internal Revenue Service announced today that four additional tax professional organizations have agreed to partner with the agency to provide assistance to taxpayers at local disaster recovery centers established by the Federal Emergency Management Agency (FEMA). |
| IR-2006-04 |
Jan. 4, 2006 |
| IRS Provides Safe Harbor to Heavy Equipment Dealers For Use of Replacement Cost for Parts |
| The Internal Revenue Service today issued guidance that provides heavy equipment dealers with a safe harbor that allows them to approximate the cost of the equipment parts inventory using the replacement cost method of accounting. The guidance was developed as part of the Industry Issue Resolution (IIR) program. The IIR program, launched by the IRS in 2001, tackles issues submitted by taxpayers, associations and other groups representing businesses. The objective is to work cooperatively to resolve frequently disputed or burdensome tax issues. |
| IR-2006-03 |
Jan. 4, 2006 |
| New AMT Assistant Debuts on IRS.gov |
| The Internal Revenue Service is providing a new online tool to help individual taxpayers determine whether they are potentially subject to the alternative minimum tax (AMT). The AMT Assistant helps taxpayers determine whether or not they may be subject to the AMT by automating the AMT Worksheet of the 1040 Instructions, called the “Worksheet to See if You Should Fill in Form 6251 – Line 45.” IRS estimates most taxpayers can make entries and get an answer in five to 10 minutes using the new application. |
| IR-2006-02 |
January 3, 2006 |
| IRS Simplifies Tax Filing Requirements for Small Employers |
| The Internal Revenue Service today issued temporary and proposed regulations that will significantly reduce tax filing burden for nearly 950,000 small business owners. Beginning January 1, 2006, certain employment tax filers will be able to file the new Form 944 (Employer’s Annual Federal Tax Return) once a year rather than filing Form 941 (Employer’s Quarterly Federal Tax Return) four times a year |
| IR-2006-01 |
Jan. 3, 2006 |
| IRS Opens 2006 Filing Season |
| The Internal Revenue Service today launched the 2006 filing season with a new look to its popular Web site, improved online tools and enhanced electronic services that will better assist taxpayers and tax preparers. |
| FS-2006-15 |
January 2006 |
| Do You Qualify for the Earned Income Tax Credit? |
| The Earned Income Tax Credit (EITC) is a tax credit for people who work but do not earn high incomes. For eligible taxpayers, EITC is a valuable tool to lower their taxes or to claim a refund. The IRS wants all eligible taxpayers, but only those who are eligible, to claim the EITC. |
| FS-2006-14 |
January 2006 |
| Highlights of the Energy Policy Act of 2005 for Individual |
| During 2006, individuals can make energy-conscious purchases that will provide tax benefits when filling out their tax returns next year. The new law provides tax credits for making your principal residence, which must be in the United States, more energy efficient and for buying certain energy efficient items. At the same time the law provides credits for various types of alternative motor vehicles, including hybrids. |
| FS-2006-13 |
January 2006 |
| Recent Tax Law Changes Affecting Businesses in the Gulf Region |
| Small businesses and employers in the Gulf region receive a variety of tax breaks and incentives under the recently-enacted GO Zone legislation (Gulf Opportunity Zone Act of 2005). The Internal Revenue Service will provide an explanation of the new laws in Publication 4492, Information for Taxpayers Affected by Hurricanes Katrina, Rita and Wilma, which will be available soon on IRS.gov. Additional information is also available at IRS.gov. |
| FS-2006-12 |
January 2006 |
| Tax Law Changes Related to Hurricanes Katrina, Rita and Wilma |
| The Gulf Opportunity Zone Act of 2005, in general, expands the provisions of the Katrina Emergency Tax Relief Act of 2005 to those affected by Hurricanes Rita and Wilma as well as Katrina. These two new laws provide certain tax breaks to help victims of the storms. The new laws alter the tax code to help individuals who suffered losses as a result of the hurricanes and to make it easier for individuals and companies to engage in charity to benefit those affected by the hurricanes. |
| FS-2006-11 |
January 2006 |
| The Collection Process |
| Most taxpayers file tax returns and pay what they owe on time. If a taxpayer does not pay, the Internal Revenue Service sends the taxpayer a bill. This begins the collection process. Along with the bill, which is called a notice, the IRS automatically sends Publication 1, Your Rights as a Taxpayer, and Publication 594, Understanding the Collection Process. These publications explain the various options and rights taxpayers have in dealing with the IRS. |
| FS-2006-10 |
January 2006 |
| The Examination (Audit) Process |
| The IRS examines (audits) tax returns to verify that the tax reported is correct. Selecting a return for examination does not always suggest that the taxpayer has either made an error or been dishonest. In fact, some examinations result in a refund to the taxpayer or acceptance of the return without change. The overwhelming majority of taxpayers files returns and make payments timely and accurately. Taxpayers have a right to expect fair and efficient tax administration from the IRS, including verification that taxes are correctly reported and paid with enforcement actions against those who fail to comply voluntarily. |
| FS-2006-09 |
January 2006 |
| Taxpayers Can Claim General Sales Taxes Instead of Income Taxes as Itemized Deduction |
| Under the American Jobs Creation Act of 2004, taxpayers who itemize their deductions have the option of claiming either state and local income taxes or state and local general sales taxes. Taxpayers will indicate by a checkbox on line 5 of Schedule A which type of tax they’re claiming. Tax Year 2005 is the last year that the law allows taxpayers the option to deduct state and local general sales taxes, although pending legislation may extend this option to future years. |
| FS-2006-08 |
January 2006 |
| Substitute Forms W-2 for Hurricane Victims |
| Some taxpayers affected by Hurricanes Katrina, Rita and Wilma may have difficulty obtaining 2005 Form W-2, Wage and Tax Statement, and other 2005 information documents. |
| FS-2006-07 |
January 2006 |
| Reconstructing Your Records |
| Reconstructing records after a disaster may be essential for tax purposes, getting federal assistance or insurance reimbursement. Records that you need to prove your loss may have been damaged or destroyed in a casualty. While it may not be easy, reconstructing your records may be essential for: |
| FS-2006-06 |
January 2006 |
| IRS Offers Filing Season Assistance to Hurricane Victims |
| Many taxpayers who were affected by hurricanes Katrina, Rita or Wilma face special challenges this filing season. These challenges may include retrieving copies of prior year tax returns or learning how to claim a casualty loss on a 2005 tax return. Whatever the issue, the Internal Revenue Service offers a number of channels of assistance to hurricane victims. For hurricane victims who need help with tax matters, the IRS has a dedicated toll free number to call, 1-866-562-5227. This is a one-stop shop offering help on multiple issues that arise for disaster victims. |
| FS-2006-05 |
January 2006 |
| Electronic Payment Options for 2006 |
| Taxpayers can pay taxes electronically by authorizing an e-pay option such as an electronic funds withdrawal from a checking or savings account or by paying with a credit card. Taxpayers making more than one estimated tax payment may want to enroll in EFTPS. |
| FS-2006-04 |
January 2006 |
| 2006 IRS E-file |
| More and more Americans are choosing e-file, which lets them electronically file an accurate tax return or get an extension of time to file without sending any paper to the Internal Revenue Service. |
| FS-2006-03 |
January 2006 |
| Tax Packages for the 2006 Filing Season |
| The Internal Revenue Service will send taxpayers almost 17.7 million tax packages and 15.5 million computer filing post cards this year. The tax packages cost nearly $6 million for printing and $5.1 million for postage for an average overall cost of 63 cents per tax package. The 4-page post cards describe the advantages of e-filing and cost about 20 cents each. For all products, the average overall cost is 42 cents per piece. Most people will get their tax packages in early January. The IRS expects to receive about 135 million individual tax returns in 2006. |
| FS-2006-02 |
January 2006 |
| Free Tax Help Available |
| The IRS offers free assistance by computer and telephone and in person. The IRS can help taxpayers get forms and publications and answer a wide range of tax questions. The IRS can also help find free tax preparation services for those who qualify. |
| FS-2006-01 |
January 2006 |
| Highlights of 2005 Tax Law Changes |
| A new uniform definition of a qualifying child, special rules for car donations, higher standard mileage rates and expanded retirement savings incentives are among the changes individual taxpayers will find when they sit down to prepare their 2005 federal income tax return. |
