INTERNAL REVENUE SERVICE
NEWS FOR TAX PROFESSIONALS
FOR MAY 2008
● The next National Phone Forum onMay 21, 2008 is entitledCalling All First Time Schedule C Filers, and would be perfect for your clients who are new sole proprietors. It will include about 50 minutes of presentation material (which will be e-mailed before-hand), and a period to ask questions. Register at the AT&T website .
First time registrants will need to create a profile first. Then, register using the access codes for the preferred time.
Access Code / Central Time / Mountain Time825428 / 9:00 am / 8:00 am
340870 / 12:00 pm / 11:00 am
294751 / 3:00 pm / 2:00 pm
Other phone forums in the works include IRS Campus Automated Underreporting Unit on June 18, 2008 and Power of Attorney on July 16, 2008. Details on all our upcoming forums are posted at Nationwide Phone Forums.
● The IRS is mailing fewer Forms 1040-ES,Estimated Tax for Individuals this year. Your client will not receive a copy by mail if they used a paid tax preparer; used software to prepare and file a paper tax return; e-filed a return; or used an e-payment method. Filers who receive Form 1040-ES by mail will receive only one mailing instead of four. Form 941 also may not be mailed as often (or at all) to some of your clients. IMRS hot issues explains why.
To help avoid missing deadlines, consider downloading employment tax due dates into an Outlook calendar or lcal, arranging estimates via Electronic Funds Withdrawal when the Form 1040 is e-filed, or paying taxes via EFTPS.
● The new April 2008 version of Circular 230 is available online.
Notice 2008-43 provides interim rules for contingent fees under section 10.27(b)(2).
Notice 2008-46 is about implementation of the tax return preparer penalty provisions.
Headliner 230 discusses Power of Attorney.
● IMRS 07-0000656, in the February IMRS Issues Report, reinforces the need for you to keep your e-file application up-to-date. If we become aware that the information is incorrect, we request the application be updated within 30 days per Publication 3112. Otherwise, we have the authority to temporarily remove an ERO from the e-file program.
A Practitioner Liaison Meeting is planned for your state. This is an opportunity to meet key IRS personnel, learn what the IRS is doing, and raise your concerns.
· ND Thursday, May 15, 2008 in Fargo. If any MAPA members are near Fargo, they are invited. See the invitation below:
You are invited to the 2008
PRACTITIONER LIAISON MEETING
When: Thursday, May 15, 2008
8:00 AM – 12:00 PM
Where: Prairie Rose Inn
1340 21st Ave. So.
(University & 94)
Fargo, ND 58103
Free Meeting open to all Tax Practitioners
Hear what is happening and get answers to your questions
Presentations by:
Internal Revenue Service
North Dakota State Tax Commission
Minnesota Department of Revenue
Sponsored by the North Dakota Society of Accountants
Limited seating-reservations required
Please RSVP to Ann Makres
Phone: (651) 726-1596
E-mail:
● IR-2008-51 The IRS offers tax tips for taxpayers on the Economic Stimulus Payment.
▪ IR 2008-48 Combat pay can count toward stimulus payment eligibility.
▪ Instructions for Completing Form 1040X To Get an Economic Stimulus Payment
▪ IR-2008-53 Economic stimulus payment information is available in Spanish. Just click
‘Español” at www.irs.gov to go to the main El IRS en Español page.
● The Department of Justice has announced a new National Tax Defier Initiative (TAXDEF).
Read about the latest injunctions against tax return preparers and tax fraud promoters at DOJ's press releases Web site.
OPPORTUNITIES:
● IR-2008-52 IRS Seeks Nominations for Information Reporting Program Advisory Committee. The deadline for submitting applications is May 30, 2008. IRPAC provides recommendations on a wide range of information reporting and administration issues. Information Reporting Program Advisory Committee (IRPAC) Open Season
● IR-2008-62 Public comment is invited on recommendations for items that should be included on the 2008-2009 Guidance Priority List.
RECENT GUIDANCE:
● Employee Plans newsletter: The Spring edition and a special edition, for April 2008, edition are available. The U.S. Department of Labor announceda new interactive Web tool, ERISA Fiduciary Advisor,to help employers comply with federal employee benefit laws,
● The spring edition of Publication 1693, the SSA Reporter, has valuable information, including articles on payroll recordkeeping, tips when working with preparers, and the work opportunity tax credit.
● You can find Frequently Asked Questions by category or keyword.
● Information has been added to IRS.gov for Hurricane Katrina, Rita and Wilma victims who claimed casualty and theft losses on their individual income tax returns and are now receiving reimbursements.
● IR (News Release) 2008-58 has guidance on how the special 50 percent depreciation allowance can be used to make capital investments this year.
● IR-2008-60. The draft instructions for the 2008 Form of 990 instructions are released for comment.
● IR-2008-61 The Political Activities Compliance Initiative (PACI) once again will be in effect for the 2008 election season.
● Announcement 2008-21explains how to request inspection of a 501(c)(3) tax-exempt organization's reporting section 511 unrelated business income (Form 990-T).
● Announcement 2008-27 describes the 2007 Advanced Pricing Agreement Program.
● Notice 2008-41 concerns re-issuance standards for qualified tender bonds .
● Notice 2008-42 discusses split-dollar life insurance arrangements.
● Notice 2008-44 announces the 2007 section 45K credit for fuel produced from a non-conventional source. The section 45K credit for gas produced from biomass, and liquid, gaseous, or solid synthetic fuel produced from coal is reduced for the 2007 calendar year. The section 45K
● Revenue Ruling 2008-23 addresses the section 274(n) limitation when a trucking company reimburses leased drivers for meal and incidental expenses.