IR-2008-52, April 2, 2008

WASHINGTON — The Internal Revenue Service is requesting membership nominations for the Information Reporting Program Advisory Committee. The deadline for submitting applications is May 30, 2008.

Established in 1991, IRPAC provides recommendations to IRS leadership on a wide range of information reporting and administration issues. The committee presents a report to the IRS commissioner each year at a public meeting in the fall.

In order to effectively advise the IRS commissioner and executives, members are drawn from substantially diverse backgrounds. Members include representatives of the taxpaying public, the tax professional community, small and large businesses, colleges and universities, state tax administrations, banks, insurance, foreign financial institutions and the payroll community.

"IRPAC plays an important role in the nation's tax system," said IRS Commissioner Doug Shulman. "The group's broad knowledge of information reporting is invaluable to our tax administration efforts."

IRPAC is comprised of up to 35 members who are appointed to three-year terms by the commissioner. Each year, approximately one-third of the membership terms expire. Nominations are currently being accepted for up to six appointments that begin January 2009.

Interested parties may nominate themselves or a qualified person for membership. All nominees must complete an application and federal tax check waiver form. In addition, FBI background checks using fingerprints and, if applicable, practitioner checks are required of all nominees.

IR-2008-53, April 2, 2008

WASHINGTON — The Internal Revenue Service today reminded taxpayers and tax-preparation volunteers that information about the economic stimulus payment is available in Spanish.

Information also is available for Spanish-speaking retirees, disabled veterans and low-wage workers who normally do not have a tax filing requirement but must file a tax return this year to receive an economic stimulus payment. All stimulus payment details are available at Centro de Información Sobre los Pagos de Estímulo Económico.

Starting in May, the IRS will issue economic stimulus payments of up to $600 ($1,200 for married couples) for people who have an adjusted gross income of less than $75,000 in adjusted gross income ($150,000 for married couples). There also is a payment of $300 for each qualifying child younger than 17.

People who normally do not pay taxes because their income is too low or nontaxable also may be eligible. People in this category must have at least $3,000 in qualifying income from, or a combination from, earned income, nontaxable combat pay and certain benefits from Social Security, Veterans Affairs and Railroad Retirement Board.

To be eligible, people cannot be dependents or eligible to be dependents on another’s tax return. Eligible people must also have a valid Social Security number. People with Individual Taxpayer Identification Numbers are not eligible.

IR-2008-54, April 2, 2008

WASHINGTON –– Internal Revenue Service Chief Counsel Donald L. Korb has selected David Hasen as the 2008-2009 Professor in Residence.

The IRS professor in residence reports directly to the chief counsel and provides advice and assistance on a wide array of legal issues within the scope of his or her expertise.

“We are excited to have David join us in the fall to carry on the fine tradition we reinstituted last year when first Calvin Johnson, and after him Gregg Polsky, joined us as professors in residence,” Korb said. “It is an extremely worthwhile program for both our lawyers, particularly the more recent hires, and for the law professors.”

Polsky’s term as professor in residence will end on June 30. Hasen will serve a nine-month term starting in late October.

Hasen has been an assistant professor at the University of Michigan Law School since 2002.  Also during the spring 2008 term, he has been a visiting faculty member at the University of Southern California Gould School of Law. Previously, he taught as a visitor at Hastings College of the Law.

IR-2008-55, April 3, 2008

WASHINGTON — The Internal Revenue Service today urged taxpayers who need additional time to complete their tax returns to submit their requests for an automatic extension electronically by April 15. E-filing a request for an extension is convenient, safe and secure, and taxpayers receive confirmation to keep with their records.

The extension gives taxpayers until Oct. 15 to file the tax return. An extension does not give the taxpayer an extension of time to pay. Those who owe taxes can make a payment when they file the extension either by mailing a check or by several electronic payment methods, such as electronic funds withdrawals from bank accounts and credit card payments.

Some taxpayers can wait until after April 15 to file a return, pay any taxes due and make IRA contributions for 2007. As a general rule, those eligible get the extra time without having to ask for it. Eligible taxpayers include:

IR-2008-56, April 7, 2008

WASHINGTON — The Internal Revenue Service reminds taxpayers who owe but can’t pay in full that several options are available to help them meet their tax obligations and save money by the April 15 filing deadline.

Taxpayers should file their return on time, pay as much as they can with their return and use IRS.gov if they need to request a payment agreement.

Interest and penalties add up for people who don’t file and pay on time. But taxpayers can limit these charges by filing on time and paying sooner.

Though interest, currently at the rate of 6 percent per year and late payment penalties, normally 0.5 percent (1/2 of 1 percent) per month, apply to any tax paid after the April 15 deadline, taxpayers can limit these charges by paying sooner. In addition, by filing on time, a taxpayer avoids the much larger 5-percent-per-month late-filing penalty. For example, a taxpayer who files on May 1, owing $1,000 in tax, would be charged interest plus a $50 penalty.

Various e-pay options offer taxpayers the easiest and fastest way to make a full or partial payment with their return. These options enable taxpayers to make payments either online or by phone using electronic funds withdrawal or a credit card. Alternatively, taxpayers can send the IRS a check made out to “United States Treasury.”

IR-2008-57, April 7, 2008

WASHINGTON — With the April 15 tax filing deadline quickly approaching, the Internal Revenue Service today reminded taxpayers that free help is available and announced extended hours at some locations.

Free assistance also is available to retirees, disabled veterans and others filing a tax return solely to receive the economic stimulus payment.

“We expect a record number of tax returns because of the stimulus payments. If you can, we urge you to avoid the rush. File now, file electronically and use direct deposit to receive a speedy refund and stimulus payment. If you need assistance, free help is available,” said Doug Shulman, IRS Commissioner.

Timely filing of the 2007 income tax return is particularly important this year because of the economic stimulus payments. Eligible Americans must file a tax return in order to receive economic stimulus payments of up to $600 ($1,200 married filing jointly). There is another $300 payment for each qualifying child younger than 17.

The IRS will use the 2007 income tax return to determine eligibility for the economic stimulus payment and to calculate the amount of the payment. People who normally file a tax return don’t need to take any additional steps to get their stimulus payment. Starting May 2, the IRS will transfer economic stimulus payments to taxpayers using direct deposit. It will begin mailing paper checks on May 16.

All IRS Taxpayer Assistance Centers are open Monday through Friday from 8:30 a.m. until 4:30 p.m. Click on “Contact IRS,” then “Contact Your Local IRS Office.” These sites offer free tax preparation and filing for individuals and families whose income is $40,000 or less.

IR-2008-58, April 11, 2008

WASHINGTON — The IRS announced today that it will issue guidance for businesses on how the special 50 percent depreciation allowance that was included in the Economic Stimulus Act of 2008 can be used to make capital investments this year. Until the guidance is issued, businesses may rely on the regulations previously issued regarding bonus depreciation.

The Economic Stimulus Act of 2008 provided a significant tax incentive for businesses to make capital investments by adding a special 50 percent depreciation allowance for qualifying purchases. This special “bonus depreciation” allowance is available to all businesses and applies to most types of tangible personal property and computer software acquired and placed in service in 2008. It allows taxpayers to deduct 50 percent of the cost of qualifying property in addition to the regular depreciation allowance that is normally available. 

The IRS recognizes that questions may arise as taxpayers evaluate the benefits of utilizing the new 50 percent bonus depreciation. Because the special 50 percent depreciation allowance contained in the Economic Stimulus Act of 2008 is generally patterned after prior bonus depreciation statutes, the Treasury Department and the IRS intend to issue guidance allowing taxpayers generally to rely on Treas. Reg. Sec. 1.168(k)-1 for purposes of the bonus depreciation provision of the Economic Stimulus Act of 2008.

IR-2008-59, April 11, 2008

Podcast: Last Minute Reminders

WASHINGTON — Now that the April 15 tax return filing and tax payment deadline is nearing, the Internal Revenue Service offers the following last-minute tips for those taxpayers who haven’t yet filed, paid what they owe or taken the necessary steps to ensure they receive the economic stimulus payment they qualify for.

Taxpayers can speed their receipt of their economic stimulus payment by choosing IRS e-file and direct deposit and by filing by the due date. They also can minimize possible interest assessments and late filing or late payment penalties by filing and paying by the due date.

File Electronically

Take advantage of e-filing, which is fast, accurate and easy. Most available tax preparation programs check for errors and necessary information, increasing the accuracy of the return and reducing the need for correspondence with the IRS to clarify errors or omissions. With most programs taxpayers can usually file a state tax return at the same time they electronically file their federal return. Once the return is accepted for processing, the IRS electronically acknowledges receipt of the return. Generally, when someone files electronically, their refund will be issued in about half the time it would take if they had filed a paper return. Those who choose direct deposit will get their refund in even less time and receive their economic stimulus payments sooner as well.

Use IRS Free File

IR-2008-60, April 15, 2008

WASHINGTON –– The Internal Revenue Service recently released for public comment the draft instructions to the 2008 Form 990, which is the return most tax-exempt organizations must file annually.

The instructions apply to the redesigned Form 990 that organizations will file for their 2008 tax years (returns filed in 2009). The final version of the redesigned Form 990 was unveiled in December 2007 (IRS news release IR-2007-204).

“Tax-exempt organizations provide tremendous benefits to the people and communities they serve, but their ability to do good work hinges upon the public’s trust,” said IRS Commissioner Doug Shulman. “The new Form 990 will foster this trust by greatly improving transparency and compliance in the tax-exempt sector. Public comment on the draft instructions will help the IRS to minimize the reporting burden on tax-exempt organizations, which is another important goal.”

The IRS seeks public comment on the draft instructions to ensure that the final instructions meet the needs of the tax-exempt community. The public comment period will run until June 1, 2008.

The IRS also released a list of special “highlights” with the draft instructions, in the hope that public comments give particular attention to these details. The IRS will post comments on its Web site as it did with comments about the draft redesigned Form 990 last year.

IR-2008-61, April 17, 2008