Free
National Phone Forum - Forms 1099:
Information Reporting
November 28, 2007
There are three different sessions for this
phone forum; choose from 10 a.m. Eastern; 1
p.m. Eastern; or 4 p.m. Eastern
Who should attend? Tax practitioners,
business owners & organizations,
accountants, bookkeepers, payroll
processors, and government agencies.
Here is what you will learn during this
forum:
?
Overview of Information Reporting
?
Form 1099-MISC and issues
?
Filing requirements and methods
?
How to make corrections
Go to the link below to see the scheduled
times for the classes, as well as more
information on how to register. Be sure to
register by November 26, 2007.
http://www.irs.gov/businesses/small/article/0,,id=158856,00.html#109
IRS Warns of E-mail Scam Soliciting
Donations to California Wildfire Victims
http://www.irs.gov/newsroom/article/0,,id=175392,00.html
The Internal Revenue Service today warned
taxpayers to be on the lookout for a new
e-mail scam that appears to be a
solicitation from the IRS and the U.S.
government for charitable contributions to
victims of the recent Southern California
wildfires. In an effort to appear
legitimate, the bogus e-mails include text
from an actual speech about the wildfires by
a member of the California Assembly. The
scam e-mail urges recipients to click on a
link, which then opens what appears to be
the IRS Web site but which is, in fact, a
fake. An item on the phony Web site urges
donations and includes a link that opens a
donation form which requests the recipient’s
personal and financial information.
IRS
Offers Relief for Late S Corporation
Elections
http://www.irs.gov/newsroom/article/0,,id=174675,00.html
Businesses that are eligible to elect S
corporation tax treatment now have a simpler
process for requesting relief for late
elections under a change announced by the
Internal Revenue Service today. Revenue
Procedure 2007-62 allows small businesses
that missed filing Form 2553, Election by a
Small Business Corporation, before filing
their first Form 1120S, U.S. Income Tax
Return for an S Corporation, to file both
forms simultaneously. The change is
effective for taxable years that end on or
after Dec. 31, 2007. The IRS cautioned that
the requirement for filing Form 2553 to
establish the election in advance of filing
the initial Form 1120S remains in effect.
However, the new process will save time and
effort for those taxpayers who can establish
reasonable cause for making a late election.
Small business corporations that are
eligible for tax treatment under Subchapter
S of the Internal Revenue Code enjoy the
advantages of the corporate structure while
being taxed similarly to a partnership or
sole proprietorship. The change, based on
suggestions from tax professionals and small
business owners, resulted from the work of
an IRS process improvement team led by the
Office of Taxpayer Burden Reduction.
Related Item:
Revenue Procedure 2007-62
2008 Inflation Adjustments Widen Tax
Brackets
http://www.irs.gov/newsroom/article/0,,id=174876,00.html
For 2008, personal exemptions and standard
deductions will rise, tax brackets will
widen and workers will be able to save more
for retirement, thanks to inflation
adjustments announced today by the Internal
Revenue Service. By law, the dollar amounts
for a variety of tax provisions must be
revised each year to keep pace with
inflation. As a result, more than three
dozen tax benefits, affecting virtually
every taxpayer, are being adjusted for 2008.
Key changes affecting 2008 returns can be
found by linking to the full article.
IRS Announces Pension Plan Limitations for
2008
http://www.irs.gov/newsroom/article/0,,id=174873,00.html
The Internal Revenue Service today announced
cost of living adjustments applicable to
dollar limitations for pension plans and
other items for Tax Year 2008. Many of the
pension plan limitations will change for
2008 because the increase in the
cost-of-living index met the statutory
thresholds that trigger their adjustment.
However, for others, the limitation will
remain unchanged.
IRS and States to Share Employment Tax
Examination Results
http://www.irs.gov/newsroom/article/0,,id=175457,00.html
Officials from the Internal Revenue Service
and more than two dozen state workforce
agencies today announced they have entered
into agreements to share the results of
employment tax examinations. The
agreements, part of the Questionable
Employment Tax Practice (QETP) initiative,
provide a centralized, uniform means for the
IRS and state employment officials to
exchange data, thereby leveraging resources
and encouraging businesses to comply with
federal and state employment tax
requirements.
IRS Warns Taxpayers about Certain Trust
Arrangements Sold As Welfare Benefit Funds
http://www.irs.gov/irs/article/0,,id=174844,00.html
The Internal Revenue Service and the
Treasury Department cautioned taxpayers
about participating in certain trust
arrangements being sold to professional
corporations and other small businesses as
welfare benefit funds and identified some of
the arrangements as listed transactions.
There are many legitimate welfare benefit
funds that provide benefits, such as health
insurance and life insurance, to employees
and retirees. However, the arrangements the
IRS is cautioning employers about primarily
benefit the owners or other key employees of
businesses, sometimes in the form of
distributions of cash, loans, or life
insurance policies.
Tax Benefits for Businesses Accommodating
the Disabled
http://www.irs.gov/businesses/small/article/0,,id=175291,00.html
There are tax benefits in the form of
credits and deductions for businesses that
accommodate the disabled. There are also
special treatments for some disabled
workers. The Disabled Access Credit provides
a non-refundable credit for small businesses
that incur expenditures for the purpose of
providing access to persons with
disabilities.
The Architectural Barrier Removal Tax
Deduction encourages businesses of any size
to remove architectural and transportation
barriers to the mobility of person with
disabilities and the elderly. The Work
Opportunity Credit provides eligible
employers with a tax credit up to 40 percent
of the first $6,000 of first-year wages of a
new employee if the employee is part of a
“targeted group.” For 2007, there are new
Work Opportunity Credit rules for veterans
with a service-connected disability. See
the full article for more details on the
various credits.
Also, the article discusses the fact that
many businesses misclassify workers in a
sheltered workshop as independent
contractors when they really are employees.
Poker Tournament Winnings Must be Reported
to the IRS
http://www.irs.gov/irs/article/0,,id=174937,00.html
Starting next year, casinos and other
sponsors of poker tournaments will be
required to report most winnings to winners
and the Internal Revenue Service, according
to the IRS.
Issue Management Resolution System (IMRS)
Monthly Overview
The
October overview is now available. IMRS
is a streamlined and structured process that
facilitates stakeholder issue
identification, resolution and feedback. You
can forward significant issues on IRS
policies, practices and procedures to your
Stakeholder Liaison (SL) local contact.
Recent Articles from e-News for Small
Businesses
Maximum Amount of Earnings Subject to the
Social Security Tax Increases for 2008
The Social Security Administration recently
announced that
the maximum amount of earnings subject to
the Social Security tax will increase to
$102,000 from $97,500 for 2008.
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