This Tax Briefing provides a review of the key tax law developments of 2010 and their impact on taxpayers -- Only 15 pages - good overview.
http://tax.cchgroup.com/downloads/files/pdfs/legislation/tax-yearend.pdf
Mary Lew Kehm, CPA
Wednesday, December 29, 2010
CCH Releases 2010 Tax Year in Review Tax Briefing
Friday, December 24, 2010
FYI: New Jersey no longer mailing 1099-G forms
Per the most recent NJ State Tax Update, New Jersey is joining New York in
not mailing 1099-G forms:
not mailing 1099-G forms:
"The State of New Jersey is no longer mailing Form 1099-G, Certain
Government Payments, to report the amount of a State tax refund a taxpayer
received. State income tax refunds may be taxable income for Federal
purposes for individuals who itemized their deductions on their Federal tax
return in the previous year. Taxpayers who need this information to complete
their Federal return will be able to view or print their 1099-G information
from the Division's Web site."
Also, Form NJ-2450 has been revised for Family Leave Insurance - Excess
family leave insurance contributions can be claimed as a credit on Form
NJ-1040. The maximum contribution for 2010 was 35.64. Taxpayers who had more
than the maximum amount withheld by two or more employers must enclose a
completed Form NJ-2450 with their return to claim the credit, unlike last
year, when many people lost the excess.
The Winter issue of the NJ State Tax Update is available at
http://www.state.nj.us/treasury/taxation/pdf/pubs/stn/winter10.pdf
Mary Lew Kehm, CPA
Whitehall, PA 18052
Tuesday, October 26, 2010
IRS Commissioner Shulman Speech clarifies some Preparer Registration items; Announces New Preparer Office
On October 26, Commissioner Shulman gave a speech in front of the AICPA Tax Division.
He stated that "We are also still refining our rules for people who work in a professional firm, like an accounting firm, who prepare all, or substantially all of a return under the supervision of an accountant, enrolled agent or lawyer. While this is a tricky area, and I can't give you definitive guidance until we publish our final guidance later this year, I will tell you that I am sympathetic to the argument that the rules should be flexible for people who have met a higher professional standard. Therefore, it is highly likely that as we implement the new rules and procedures there will be some relief for testing and continuing education requirements for people who do not sign a return and work in a professional firm under the supervision of an accountant, enrolled agent or lawyer."
He also said IRS is still working on a start date for testing, and an effective date for the 15 hours of continuing education. DURING THE FIRST YEAR OF IMPLEMENTATION, IRS INTEDS TO WAIVE THE REQUIREMENT FOR CONTINUING EDUCATION.
IRS is also creating a Return Preparer Office (separate from OPR) inside of the IRS that will be led by David R. Williams, who is spearheading the return preparer initiative. He will report directly to Steve Miller, Deputy Commissioner for Services and Enforcement.
According to Commissioner Shulman, the new office will have broad responsibility for the return preparer initiative. It will manage all activities related to continuing education and testing of all professionals under IRS jurisdiction. t will also manage the registration system and process, as well as coordinate resource planning for IRS efforts across the organization related to return preparers.
It is the Commissioner's intention to provide Karen Hawkins and her OPR team increased resources to investigate additional cases of improper conduct, ethical violations and other disciplinary issues involving tax professionals falling under Treasury Circular 230. "I think it's fair to say that we could see an appreciable jump in the OPR case load in the foreseeable future as we work to ensure that all return preparers are serving the American people well."
Consider yourself warned.
The full text of the speech is IR 2010-107 available at the link below.
Mary Lew Kehm, CPA
http://www.irs.gov/newsroom/article/0,,id=229675,00.html
He stated that "We are also still refining our rules for people who work in a professional firm, like an accounting firm, who prepare all, or substantially all of a return under the supervision of an accountant, enrolled agent or lawyer. While this is a tricky area, and I can't give you definitive guidance until we publish our final guidance later this year, I will tell you that I am sympathetic to the argument that the rules should be flexible for people who have met a higher professional standard. Therefore, it is highly likely that as we implement the new rules and procedures there will be some relief for testing and continuing education requirements for people who do not sign a return and work in a professional firm under the supervision of an accountant, enrolled agent or lawyer."
He also said IRS is still working on a start date for testing, and an effective date for the 15 hours of continuing education. DURING THE FIRST YEAR OF IMPLEMENTATION, IRS INTEDS TO WAIVE THE REQUIREMENT FOR CONTINUING EDUCATION.
IRS is also creating a Return Preparer Office (separate from OPR) inside of the IRS that will be led by David R. Williams, who is spearheading the return preparer initiative. He will report directly to Steve Miller, Deputy Commissioner for Services and Enforcement.
According to Commissioner Shulman, the new office will have broad responsibility for the return preparer initiative. It will manage all activities related to continuing education and testing of all professionals under IRS jurisdiction. t will also manage the registration system and process, as well as coordinate resource planning for IRS efforts across the organization related to return preparers.
It is the Commissioner's intention to provide Karen Hawkins and her OPR team increased resources to investigate additional cases of improper conduct, ethical violations and other disciplinary issues involving tax professionals falling under Treasury Circular 230. "I think it's fair to say that we could see an appreciable jump in the OPR case load in the foreseeable future as we work to ensure that all return preparers are serving the American people well."
Consider yourself warned.
The full text of the speech is IR 2010-107 available at the link below.
Mary Lew Kehm, CPA
http://www.irs.gov/newsroom/article/0,,id=229675,00.html
Thursday, October 7, 2010
EFTPS Scam Rears its Ugly Head Again
Yet another wave of the EFTPS Phishing Scam targeting Electronic Federal Tax Payment System (EFTPS) users is going around. The scheme uses an e-mail claiming that a tax payment was rejected and directs the user to a website for more information. The website contains malware that will attempt to infect the user's computer. DO NOT reply to the sender, access links on the site or submit any information to them. IRS does NOT send emails regarding your individual or business account.
I personally received more than 5 of these emails today. If you need to check the status of your payments, log on DIRECTLY to your EFTPS account and click on the left hand side "Check Payment History". You can verify status of all payments there.
Thursday, September 23, 2010
Paid preparer Paper Application Up on IRS Website -- Form W-12
Apparently there IS a paper application for PTIN - the IRS said previously
there would not be a paper form, but they must have changed their minds.
Form W-12 will replace Form W-7P. The new form is at
http://www.irs.gov/pub/irs-pdf/fw12.pdf
The instructions say it will take 4-6 weeks if filed by mail.
I would still recommend waiting for the web-based system to open - the IRS
has said it will be up by the end of next week, so we won't have to wait
much longer. There is a site up already for the PTIN but it hasn't gone
live. The form might still be of interest to see what questions they will be
asking.
there would not be a paper form, but they must have changed their minds.
Form W-12 will replace Form W-7P. The new form is at
http://www.irs.gov/pub/irs-pdf/fw12.pdf
The instructions say it will take 4-6 weeks if filed by mail.
I would still recommend waiting for the web-based system to open - the IRS
has said it will be up by the end of next week, so we won't have to wait
much longer. There is a site up already for the PTIN but it hasn't gone
live. The form might still be of interest to see what questions they will be
asking.
Wednesday, September 22, 2010
LeverageSALT: Pennsylvania Keystone Opportunity Zones Set To Exp...
LeverageSALT: Pennsylvania Keystone Opportunity Zones Set To Exp...: "If your business is currently taking advantage of a Pennsylvania Keystone tax credit, you may be interested in reading a recent bulletin iss..."
Thursday, September 16, 2010
IRS Estimates Late September for PTIN Registration Start Date
>From IRS FAQ's (updated 09/16/10)
Implementation Timeline
1. What is the best estimate for when the new regulations will be
implemented? (revised 9/16/10)
Late-September, 2010, is the current target date for an on-line registration
system and all preparers will need to be registered on the new system and
have a Preparer Tax Identification Number (PTIN) prior to filing any return
after Dec. 31, 2010. Final determination of these dates is dependent on many
factors and will be widely publicized as soon as available.
Testing will not be implemented until after registration and mandatory PTIN
usage are in place.
Complete FAQ's on Proposed New Requirements for Tax Return Preparers
available at http://bit.ly/ciHosl
Implementation Timeline
1. What is the best estimate for when the new regulations will be
implemented? (revised 9/16/10)
Late-September, 2010, is the current target date for an on-line registration
system and all preparers will need to be registered on the new system and
have a Preparer Tax Identification Number (PTIN) prior to filing any return
after Dec. 31, 2010. Final determination of these dates is dependent on many
factors and will be widely publicized as soon as available.
Testing will not be implemented until after registration and mandatory PTIN
usage are in place.
Complete FAQ's on Proposed New Requirements for Tax Return Preparers
available at http://bit.ly/ciHosl
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