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Dec 2006 Tax Press ReleasesDec 29, 2006 Closures Will Not Affect Federal Tax Deposits The Internal Revenue Service announced there will be no extension of the Tuesday, Jan. 2, 2007 deposit due date and the Electronic Federal Tax Payment System (EFTPS) will conduct normal business operations on Tuesday, Jan. 2, despite the closing of federal offices as part of the national day of mourning for former President Ford as announced by the White House. Federal tax deposits due on Jan. 2, 2007 are expected to made as scheduled. However, IRS will waive late federal tax deposit penalties for deposits due on Tuesday if the following conditions are met:
The ...Entire Release
Dec 28, 2006 Installment Agreement User Fee Increases This news release supersedes News Release IR-2006-176, dated Nov. 13, 2006.
Washington (IRS) Beginning Jan. 1, 2007, the Internal Revenue Service will implement revised user fees for installment agreements. For eligible individuals with income at or below certain levels, the fee for entering new agreements will not increase but remain at the 2006 level.
The Office of Management and Budget has directed federal agencies to charge user fees reflecting the full cost of goods or services that convey special benefits to recipients beyond those accruing to the general ... Entire Release
Dec 22, 2006 IRS Implements Extender Legislation Washington (IRS) The Internal Revenue Service announced new guidance today to help tax filers in 2007 claim the extended deductions and other tax advantages in the Tax Relief and Health Care Act of 2006 signed into law this week.
The start of the 2007 filing season will begin on time. However, the recent changes in the law mean the IRS will not be able to process a small percentage of individual tax returns until early February, primarily involving three tax deductions the state and local sales tax, higher education tuition and fees, and educator expenses.
Th... Entire Release
Dec 22, 2006 Ford And Mercury Hybrids Still Qualify For Tax Credit Washington (IRS) The Internal Revenue Service announced that purchasers of qualified Ford Motor Company vehicles may continue to claim the Alternative Motor Vehicle Credit. The announcement comes after the IRS concluded its third quarterly review of the number of hybrid vehicles sold.
Ford sold 4,626 qualifying vehicles to retail dealers during the quarter ending September 30, 2006. The credit amount and make and model of qualified vehicles sold are:
Ford Escape 2WD, Model Years 2005, 2006 and 2007 $2,600
Ford Escape 4WD, Model Years 2005, 2006 an...Entire Release
Dec 21, 2006 IRS To Process Cash Balance Plan Conversion Applications Washington (IRS) The Internal Revenue Service today announced it is lifting a moratorium on determination letter applications for conversions from traditional defined benefit pension plans to so-called cash balance plans.
In Notice 2007-6, the IRS also provides interim guidance on provisions of the Pension Protection Act of 2006 involving cash balance plans, and the agency is requesting public comments on several issues addressed in the notice. The notice will appear in Internal Revenue Bulletin 2007-3, dated Jan. 16, 2007.
In 1999, the IRS announced a susp... Entire Release
Dec 14, 2006 Tax Law Charity Changes Washington (IRS) Individuals and businesses making contributions to charity should keep in mind several important tax law changes made last summer by the Pension Protection Act.
The new law offers older owners of individual retirement accounts a new way to give to charity. It also includes rules designed to provide both taxpayers and the government greater certainty in determining what may be deducted as a charitable contribution. Some of these changes include the following.
New Tax Break for IRA Owners
An IRA owner, age 70 ½ or over, can directly tr... Entire Release
Dec 12, 2006 2006 Fall Statistics of Income Bulletin Washington (IRS) The Internal Revenue Service today announced the release of the Fall 2006 issue of the Statistics of Income Bulletin.
The Bulletin contains a detailed look at the 132.2 million individual income tax returns filed for tax year 2004, an increase from the 130.4 million returns filed for tax year 2003. The adjusted gross income (AGI) less deficit reported on these returns totaled $6.8 trillion, while taxable income totaled $4.7 trillion.
In addition, the Bulletin contains six other articles with the following information:
For 2003, all bu...Entire Release
Dec 12, 2006 First Quarter Interest Rates Remain Same Washington (IRS) The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning January 1, 2007. The interest rates are as follows:
eight (8) percent for overpayments [seven (7) percent in the case of a corporation];
eight (8) percent for underpayments;
ten (10) percent for large corporate underpayments; and
five and one-half (5.5) percent for the portion of a corporate overpayment exceeding $10,000.
Under the Internal Revenue Code, the rate of interest is determined on a ...Entire Release
Dec 08, 2006 Submissions To IRS Now Normal Washington (IRS) With the reopening of the Internal Revenue Services headquarters building, the temporary procedures for submitting certain requests and submissions will no longer be in effect. As of December 11, taxpayers should make their submissions as they normally did before the IRS building at 1111 Constitution Ave. temporarily closed due to a flood.
Beginning on December 11, taxpayers should follow the normal instructions contained in Revenue Procedures 2005-68 and 2006-1 for expedited letter ruling requests for reorganizations and section 355 distributions... Entire Release
Dec 08, 2006 IRS Headquarters Reopens Washington (IRS) The Internal Revenue Service Headquarters Building reopened today as the first wave of employees returns to the facility following extensive flooding in June, the IRS and General Services Administration announced today.
The phased move-in of more than 2,000 IRS employees will continue in coming weeks following repairs to key parts of the infrastructure at the building, located at 1111 Constitution Ave. NW.
Torrential rains closed the building beginning June 26 after an estimated 5.5 million gallons of water flooded the basement and sub-basement.... Entire Release
Dec 05, 2006 RALs Removed On Free File Washington (IRS) The successful and innovative Free File program launches its fifth year in January with an agreement by private sector partners to remove ancillary offerings such as Refund Anticipation Loans (RALs) from the program.
Free File is a partnership between the Internal Revenue Service and the Free File Alliance, a coalition of tax preparation software manufacturers who make their software products available to eligible taxpayers for free and provide free Federal return electronic filing. The Free File software products are the same as their commercial p... Entire Release
Dec 01, 2006 Payroll Deduction Contributions To Charities Guidelines Washington (IRS) The Internal Revenue Service announced today new guidelines for taxpayers to follow to substantiate donations to charities that were made by payroll deductions.
"This makes it easier for businesses and individuals to support worthwhile charities without fear of losing the deduction," said IRS Commissioner Mark W. Everson.
Notice 2006-110 explains how a taxpayer who makes charitable contributions by payroll deductions can meet the new recordkeeping requirements. The taxpayer should retain a pay stub, Form W-2, or other document furnished by th... Entire Release
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