IRS Begins Tax Season 2009 with Steps to Help Financially Distressed Taxpayers; Promotes Credits, e-File Options
The Internal Revenue Service today kicked off the 2009 tax filing season by announcing a number of new steps to help financially distressed taxpayers maximize their refunds and speed payments while providing additional help to people struggling to meet their tax obligations. IRS Commissioner Doug Shulman encouraged taxpayers to take advantage of several new tax credits and deductions this filing season and announced a major enhancement to the Free File program that will allow nearly all taxpayers to e-file for free and accelerate their refunds.
“With so many people facing financial difficulties, we want taxpayers to get all the tax credits they’re entitled to as quickly as they can,” Shulman said. “In addition, we are creating new protections to help people trying to meet their tax obligations. The IRS will do everything it can to help during these tough times.”
The areas where the IRS can provide assistance include help for people who owe taxes, and information on steps taxpayers can take to maximize their refunds and speed the delivery of money from the IRS, such as the first-time homebuyer credit, additional standard deduction for state or local real estate taxes paid in 2008, and mortgage workouts and foreclosures. See the full article for details.
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National Taxpayer Advocate Urges Tax Simplification and Compassionate Treatment of Taxpayers Hit by Recession
National Taxpayer Advocate Nina E. Olson today released her annual report, urging Congress to greatly simplify the tax code and recommending measures to reduce the burden on taxpayers who are struggling to pay their tax bills. The report takes note of the serious financial difficulties facing many Americans in light of the ongoing economic downturn. “It is imperative for the IRS to consider the circumstances of taxpayers facing economic hardship before initiating enforcement actions,” Olson wrote. The report designates the complexity of the tax code as the most serious problem facing taxpayers. According to data compiled by Olson’s office, U.S. taxpayers and businesses spend about 7.6 billion hours a year complying with tax-filing requirements. The report includes a series of recommendations, including recommendations to repeal the Alternative Minimum Tax; streamline education and retirement savings tax incentives; simplify the family status provisions of the tax code; simplify the rules under which workers are classified as employees or independent contractors; reduce sunset and phase-out provisions and revise the overall penalty structure.
See the article for links to the executive summary and full report, or use the links below:
• Executive Summary of 2008 Annual Report to Congress
• Complete Report: 2008 Annual Report to Congress
Click Here
IRS and Telemundo Will Host Tax Information Program for Spanish-Speaking Taxpayers.
The Internal Revenue Service will join national TV network Telemundo in an informative tax program aimed at Spanish-speaking taxpayers on Sunday, Jan. 25.
The one-hour program, “Los Impuestos y Usted” (“Taxes and You”), will air at:
• 3:00 p.m. Eastern, Central and Pacific Time
• 2:00 p.m. Mountain Time
Consult your local listings for exact times.
“Los Impuestos y Usted” will focus on a variety of tax issues, including topics such as who must file a tax return and who can claim deductions and benefits. Mónica Noguera, host for many of Telemundo’s special programs, will present the IRS program, which features in-studio interviews with IRS tax experts. Information about the IRS is available in Spanish Here or toll-free at 1-800-829-1040, extension 8.
Click Here
Small Business Video and Audio Presentations
A new page on IRS.gov features video and audio presentations on a variety of topics for small businesses and self-employed taxpayers. Visit it HERE
An online audio podcast for first-time Schedule C filers includes basic tips to help new business owners avoid potential problems. Visit it HERE
Tax Tips for 2009
The Internal Revenue Service is offering a daily series of Tax Tips for the 2009 federal tax filing season that began this month. Tax Tips offer concise, useful information on topics affecting millions of taxpayers. More than 70 tips on federal taxes will be available with a new one for each business day until the April 15 tax filing deadline. Tips are available as easy-to-understand text as well as several audio files for podcast.
Sample text-based Tax Tip topics include:
• Choosing a tax preparer
• How e-file can make filing easier and getting you your refund faster
• What tax records to keep
• First-Time Homebuyer Credit
Taxpayers can receive new text-based Tax Tips via email when they are published by subscribing through the e-News Subscriptions page on IRS.gov.Click Here
2009 Annual Customer Survey to Begin
The IRS Small Business/Self-Employed Division will begin conducting its annual telephone survey of small business and self-employed taxpayers starting January 21, 2009 and running through mid-April, 2009. As in previous years, the survey is designed to gather opinions about the delivery of IRS’s small business products and services. The survey contractor, Pacific Market Research (PMR) will be calling several thousand randomly selected taxpayers from across the country. Given the heightened awareness of identity theft and concerns about "phishing" schemes involving the IRS, you can let your members and clients know that this is a valid IRS-sponsored survey. Potential survey participants should have received a letter from SB/SE Commissioner Chris Wagner inviting them to participate in the survey. Included with the letter from IRS will be a letter from Pacific Market Research (PMR), the IRS contractor for the survey with a control number, and information on how to contact PMR. All surveys are voluntary, and individual responses will be kept anonymous. The survey contractor will not ask respondents to provide any personal or financial information such as Social Security or Employer Identification numbers, or banking or financial information.
Correcting Employment Taxes
Starting this year there are processes for correcting errors on employment tax returns. The new “X” forms, shown in the chart below will be available for downloading starting in January. Links to each form and the instructions will be added as the forms become available. See the full article for details on how to correct errors found before 12/31/2008 vs. those found starting in 2009. Click Here
EITC Awareness Day is January 30
Employers … you can help your employees increase their take-home pay at no cost to you! Help your employees get the money they deserve … did you know that one in four eligible taxpayers fail to claim their EITC? Bookmark the link above as your one-stop resource for Earned Income Tax Credit (EITC) tools, information and guidance. This year, it’s easier than ever to help your employees determine whether they qualify for EITC.
Revenue Procedure 2009-13 sets forth the procedures for employers to follow to request to receive notification of their qualification to file Forms 944, Employer’s Annual Federal Tax Return, and also sets forth the procedures for employers who were notified that they should file Form 944 who wish to request to file Forms 941, Employer’s Quarterly Federal Tax Return, instead for tax year 2009. It was published in IRB 2009-03 dated Jan. 21, 2009. Click Here
Recent Articles from e-News for Small Businesses
IRS Speeds Lien Relief for Homeowners Trying to Refinance, Sell
The Internal Revenue Service today announced an expedited process that will make it easier for financially distressed homeowners to avoid having a federal tax lien block refinancing of mortgages or the sale of a home. Click Here
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