IR-2008-100, Sept. 3, 2008

• Updated Sept. 12 to add Calcasieu parish.
• Updated Sept. 11 to add Catahoula, Franklin, Grant, LaSalle, St. Helena and Washington parishes.
• Updated Sept. 4 to add St. Tammany and Tangipahoa parishes.
• Updated Oct. 17 to add Concordia, East Carroll, Madison, Morehouse, Quachita, Richland, Tensas, Union, West Carroll and Winn parishes.

WASHINGTON — The Internal Revenue Service is providing tax relief to victims of Hurricane Gustav in affected areas of Louisiana.

The IRS is postponing until Jan. 5, 2009 deadlines for taxpayers who reside or have a business in the disaster area. The postponement applies to return filing, tax payment and other time-sensitive acts otherwise due between Sept. 1, 2008 and Jan. 5, 2009. This includes:

• Individual estimated tax payments due Sept. 15, 2008.
• Corporate extended 1120 tax returns due Sept. 15, 2008.
• Individual extended 1040 tax returns due Oct. 15, 2008.

“As residents of Louisiana return to their homes following Hurricane Gustav, taxes are one thing they won’t need to worry about,” IRS Commissioner Doug Shulman said. “This relief gives them extra time to get their lives in order before having to deal with their tax matters.”

In addition, the IRS will waive the failure to deposit penalties for employment and excise deposits due on or after Sept. 1, 2008 and on or before Sept. 16, 2008 as long as the deposits are made by Sept. 16, 2008.

Other provisions are listed in the Grant of Relief section below.

IR-2008-101, Sept. 4, 2008

WASHINGTON —  The Internal Revenue Service today announced that it has met its goal of hiring at least 1,000 military veterans this fiscal year, and the agency will continue to focus its recruitment efforts toward this important group.

The IRS’ goal was to hire at least 1,000 military veterans during the fiscal year. In fiscal year 2008, which ends September 30, the agency has hired 1,052 veterans.

“The men and women who served America in the military are highly capable and trained individuals ready to supply valuable skills needed by the IRS, or any employer for that matter. I am pleased the IRS has met its goal. But we are not going to stop there. We will continue to recruit from this talented pool of people who already have demonstrated their leadership, work ethic and dedication,” said IRS Commissioner Doug Shulman.

During his confirmation hearing before the Senate Finance Committee, Shulman pledged to do everything possible to increase the hiring of veterans.

Earlier this year, the IRS Human Capital Office developed Veteran Hiring, Employment and Recruitment Opportunities (V-HERO) to recruit veterans and transitioning military personnel. In this effort, the IRS is partnering with veterans’ organizations, other government agencies and job fairs.

The IRS has developed partnerships with the Paralyzed Veterans of America, the American Legion, the Veterans of Foreign Wars and the Blinded Veterans of America. IRS staff meets often with these organizations’ membership to discuss employment opportunities.

IR-2008-102, Sept. 8, 2008

WASHINGTON — The Internal Revenue Service and the Treasury Department today issued new regulations that will streamline the approval process for organizations seeking tax-exempt status as publicly supported charities.

The new regulations do away with the so-called advance rulings that granted public charity status for an initial five-year period but required exempt organizations to demonstrate, after the initial period, that they in fact received a substantial part of their support from public sources to receive a final determination letter.

The IRS was able to eliminate the advance rulings process because of the recent redesign of the Form 990, the tax return filed by organizations exempt from federal income tax. 

“The revised Form 990 enhances transparency for exempt organizations and makes it easier for them to show that they are ‘publicly supported’ charities, rather than private foundations,” said IRS Commissioner Doug Shulman.

Private foundations under federal law are subject to more restrictions on the way they operate than publicly supported charities. To apply for exempt status either as a private foundation or as a publicly supported charity, an organization must file a Form 1023, the application for recognition of tax exemption.

Over the years, approximately 95 percent of exempt organizations that received advance rulings were later recognized as publicly supported charities at the end of the five-year period. 

IR-2008-103, Sept. 9, 2008

WASHINGTON — People who are awaiting an economic stimulus payment or who have yet to file can avoid common errors that may delay their payment. They also can use the IRS Web site to answer most common questions.

The Internal Revenue Service, which is still issuing economic stimulus payments, has been studying trends and common issues in filing errors and questions posed by people calling its customer service telephone lines.

The most common question posed to the IRS is from people wondering when they will receive their stimulus payment. The question can be answered easily by going to IRS.gov and using the “Where’s My Economic Stimulus Payment?” Web tool.

Here’s how to avoid common mistakes:

IR-2008-104, Sept. 11, 2008

WASHINGTON — The Internal Revenue Service today announced that it has reached a settlement with Arnold & Porter LLP, which has paid a civil tax shelter promoter penalty. The settlement relates to the Firm’s failure in 2000, 2001 and 2002 to comply with tax shelter registration requirements and its participation in the organization of the following listed transactions that were sold to high-net worth individuals and corporations: Partnership Option Portfolio Securities (POPS), Personal Investment Corporation (PICO), and Family Office Customized Partnerships (FOCUS). The Firm cooperated with the Internal Revenue Service’s examination. The Firm has put into place a comprehensive compliance program designed to assure ongoing adherence to all tax shelter disclosure and list maintenance requirements of the Internal Revenue Code, and related laws.

Arnold & Porter has consented to issuance of this News Release in accordance with Section 6103 of the Internal Revenue Code.

Notes:

This information was obtained from the IRS.gov website. E-File Magic does not warrant the accuracy of this information and provides it as a convenience to it’s customers. We encourage you to visit http://www.irs.gov/newsroom/article/0,,id=108500,00.html for the most recent copy of this information. Download our Free 1098/1099/5498/W2G Software by Downloading the Free Business E-File Software Here.

IR-2008-105, Sept. 12, 2008

See updated information for Louisiana and Texas victims of Ike.

WASHINGTON — Taxpayers and tax preparers affected in coming days by Hurricane Ike will have an extra seven days to file corporate tax returns and third-quarter estimated taxes otherwise due on Monday, Sept. 15, 2008, the Internal Revenue Service announced today.

Hurricane Ike is expected to make landfall on the Gulf Coast of Texas, not far from Houston, by early Saturday morning.

Because the storm is falling within one business day of the Sept. 15 due dates, taxpayers directly impacted by the storm will have until midnight Sept. 22 to meet their tax filing obligations without incurring late filing and payment penalties.

The IRS is likely to further postpone that deadline and make further tax relief available following damage assessments by the Federal Emergency Management Agency.

Affected taxpayers can mark paper tax returns with the words “Hurricane Ike.” Taxpayers who e-file their returns can use their software’s “disaster” feature, if available.

For further information, see Tax Relief in Disaster Situations.

Notes:

IR-2008-106, Sept. 16, 2008

WASHINGTON — First-time homebuyers should begin planning now to take advantage of a new tax credit included in the recently enacted Housing and Economic Recovery Act of 2008.

Available for a limited time only, the credit:

• Applies to home purchases after April 8, 2008, and before July 1, 2009.
• Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.
• Is fully refundable, meaning that the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax that they owe.

However, the credit operates much like an interest-free loan, because it must be repaid over a 15-year period. So, for example, an eligible taxpayer who buys a home today and properly claims the maximum available credit of $7,500 on his or her 2008 federal income tax return must begin repaying the credit by including one-fifteenth of this amount, or $500, as an additional tax on his or her 2010 return.

Eligible taxpayers will claim the credit on new IRS Form 5405. This form, along with further instructions on claiming the first-time homebuyer credit, will be included in 2008 tax forms and instructions and be available later this year on IRS.gov, the IRS Web site.

If you bought a home recently, or are considering buying one, the following questions and answers may help you determine whether you qualify for the credit.

Q. Which home purchases qualify for the first-time homebuyer credit?

IR-2008-107, Sept. 18, 2008

• Updated 10/14/08 to add Gregg, Harrison, Rusk, Shelby and Smith.counties.

WASHINGTON — Texas taxpayers who were adversely affected by Hurricane Ikequalify for tax relief from the Internal Revenue Service, including the postponement of tax filing and payment deadlines until Jan. 5, 2009.

Following the hurricane’s landfall on Saturday, Sept. 13, the federal government declared the following Texas counties a presidential disaster area qualifying for individual assistance: Angelina, Austin, Brazoria, Chambers, Cherokee, Fort Bend, Galveston, Gregg, Grimes, Hardin, Harris, Harrison, Houston, Jasper, Jefferson, Liberty, Madison, Matagorda, Montgomery, Nacogdoches, Newton, Orange, Polk, Rusk, Sabine, San Augustine, San Jacinto, Shelby, Smith, Trinity, Tyler, Walker, Waller, and Washington.

"We are giving taxpayers in these hard-hit areas until early next year to file their returns and make payments," IRS Commissioner Doug Shulman said. "All Americans have concerns for those affected by this devastating hurricane, and our hope is that this extra time will allow people to stay focused on the rebuilding and clean-up effort."

Specifically, the relief postpones until Jan. 5, 2009, certain deadlines for taxpayers who reside or have a business in the disaster area. The postponement applies to return filing, tax payment and certain other time-sensitive acts due on or after Sept. 7, 2008, and before Jan. 5, 2009 –– including individual estimated tax returns and corporate tax returns that were due Sept. 15, and extended individual returns due Oct. 15.

IR-2008-108, Sept. 18, 2008

• Updated 10/14/08 to add Allen, Livingston, Orleans, St. Martin, St. Tammany, Tangipahoa parishes.

WASHINGTON — Louisiana taxpayers who were adversely affected by Hurricane Ikequalify for tax relief from the Internal Revenue Service, including the postponement of tax filing and payment deadlines until Jan. 5, 2009.

On Saturday, Sept. 13, the federal government declared the following Louisiana parishes a presidential disaster area qualifying for individual assistance: Acadia, Allen, Ascension, Assumption, Avoyelles, Beauregard, Calcasieu, Cameron, Catahoula, Concordia, East Baton Rouge, East Carroll, East Feliciana, Franklin, Evangeline, Grant, Iberia, Iberville, Jefferson, Jefferson Davis, Lafayette, Lafourche, LaSalle, Livingston, Madison, Morehouse, Orleans, Plaquemines, Pointe Coupee, Quachita, Rapides, Richland, Sabine, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, St. Landry, St. Martin, St. Mary, St. Tammany, Tangipahoa, Tensas, Terrebonne, Union, Vermilion, Vernon, Washington, West Baton Rouge, West Carroll, West Feliciana, and Winn.

"We are giving taxpayers in these hard-hit areas until early next year to file their returns and make payments," IRS Commissioner Doug Shulman said. "All Americans have concerns for those affected by this devastating hurricane, and our hope is that this extra time will allow people to stay focused on the rebuilding and clean-up effort."

IR-2008-109, Sept. 23, 2008

Listen in: Audio Interview | Watch: Videos in American Sign Language

WASHINGTON — The Oct. 15 deadline to file a 2007 income tax return and to receive an economic stimulus payment this year is fast approaching.

This is the deadline for the estimated 4.3 million retirees and disabled veterans who may be eligible to receive a stimulus payment but who normally don’t file a tax return.

It’s also the deadline for the approximately 10 million people who earlier this year received extensions to file their 2007 income tax return.

“Don’t let the economic stimulus payment pass you by,” said IRS Commissioner Doug Shulman. “If you want the payment this year, you should file by Oct. 15. We recognize that there may be older Americans and disabled veterans who still have not filed for their stimulus payment. If you know of a friend, neighbor or family members who may be in that situation, please give them a hand if they need it.”

The IRS has accounted for nearly 80 percent of the Social Security and Veterans Affairs beneficiaries initially identified as potentially eligible.