[OSSSA218] Catching up

Mon Jan 12 16:16:15 PST 2009

Good afternoon, 

Rather than inundating you with many e-mails I've consolidated information I believe may be of interest to many of you. Please remember this information is being passed along for you to review and do with it as you feel appropriate. If it's of no interest just disregard and delete.

Here is a summary and links to each piece of information.

1. Alert - IRS Warns - Be Aware of Suspicious E-Mails
2. Training Opportunities
3. 2009 W-4
4. IRS GuideWire
     IRS forms 941 & 944 & 941-X
     Tax Return Penalties
     Qualified Tuition Plans
     Closing Agreements
     Domestic Partnership
     457A
5. 2009 RMD Waiver
6. Of Interest
    2009 Mileage Rate
    And other information    

ALERT - IRS WARNS - Be Aware of Suspicious E-Mails  
Be aware of e-mail scams that fraudulently use the IRS name or Logo as a lure. The goal of the scam is to trick people into revealing personal and financial information, such as Social Security, bank account or credit card numbers, which the scammers can use to commit identity theft and steal your money. 
The IRS does not send unsolicited e-mails about a person’s tax account or ask for detailed personal and financial information. Additionally, the IRS never asks people for the PIN numbers, passwords or similar secret access information for their credit card, bank or other financial accounts. 
If you receive an e-mail from someone claiming to be the IRS or directing you to an IRS site, 
Do not reply. 
Do not open any attachments. Attachments may contain malicious code that will infect your computer. 
Do not click on any links. If you clicked on links in a suspicious e-mail or phishing Web site and entered confidential information, visit our Identity Theft page on IRS.gov. 
You can help shut down these schemes and prevent others from beingvictimized. If you receive a suspicious e-mail that claims to come from the IRS, you can forward that e-mail to a special IRS mailbox, phishing at irs.gov The e-mail must be forwarded using special instructions at IRS.gov, or it loses the encoding needed to track it to its source. The IRS can use the information, URLs and links in the suspicious e-mails you forward to trace the hosting Web site and alert authorities to help shut down the fraudulent sites. After you forward the e-mail to us, delete the message. 
Remember that all of the web page addresses for the official IRS website, IRS.gov, begin with http://www.irs.gov.  Don' t be confused or misled by internet sites that end in .com, .net, .org or other designations instead of .gov. The address of the official IRS governmental Web site is www.irs.gov. 
Suspicious e-Mails and Identity Theft 

Training Opportunities

Watch: January's LIVE (free) Webcast program
(Special 100 minute program)
When: Tuesday, January 13, 2009, 2:00 pm to 3:40 pm ET

Topic: "Getting Ready for Filing Season 2009 Individual and Business"

January Show - CE Special Offer: Two CE Credits - Pay For One

CPE Program Level: Overview
2 CPE Credits Recommended; NO prerequisites or advance preparation
CTEC Course #: 3022-CE-0060
ELMS Course #: 22892

To Register - - -
If you are a new viewer, you'll need to complete a simple registration process to gain access to our programs. Please visit our home page at http://www.taxtalktoday.tv, and select the button under the log-in that says “NOT REGISTERED?”. You only need to register once!

Once registered, you will have complete access to ALL our live, archive and podcast programs.

IRS/SSA Employment Tax Updates Webinar 

KayDel Marshall, IRS Senior Stakeholder Liaison reports......

We are doing another IRS/SSA Employment Tax Updates Webinar as we needed to add classes due to demand.  If anyone wishes to register for this, the link to register is below:

Date & Time: Wed, Jan 21, 2009 1:00 PM Pacific Standard Time Meeting Type: Web & Audio 
Registration Link: https://cc.readytalk.com/r/itvawwqc1jzt 

Next Program:
Tuesday, March 10, 2009
Surviving the IRS Audit
2:00 p.m. - 3:00 p.m. ET

Making Employment Taxes Easier: Updates & Finding Payroll Information on the IRS Web Site
Representatives from SSA and IRS will present information on the following topics: 
Electronic filing of W-2s 
Verifying employee SSNs online 
Verifying SSNs/EINs for information return (1099) filing 
IRS updates and issue resolution 
Navigating the IRS and SSA web sites to find information payroll professionals need 
Note: Enrolled Agents are entitled to 2 CPE Credits; other payroll and tax professionals may qualify depending on the requirements of their organizations. Don't confirm for the current date (30 Oct 08) if the following dates are best for your schedule: 
Wednesday, January 21, 2009 from 1:00 – 3:00 p.m. Register Now!
Click here to view an archived copy of the webinar.

Subject: 2009 W-4

 We had inquired if the amount on the 2009 W-4 was correct as it was the same as the amount on the 2008 W-4, and in prior years line 8 had corresponded to the exemption amount for the current year.  

KayDel Marshall 
Senior Stakeholder Liaison
Small Business & Self-Employed C/L/D
1220 S.W. 3rd Avenue, Mail Stop O-185 
Portland, Oregon 97204 
503-326-5240 Phone 
503-326-5957 Fax 
E-Mail: KayDel.Marshall at irs.gov 
ID #93-10646
This was her response.:
Thank you for your email inquiry dated January 5, 2009, about Form W-4, Employee’s Withholding Allowance Certificate.  In your email, you inquired about the amount given to use as the divisor on line 8 of the Deductions and Adjustments Worksheet.  This amount is provided to us by the Treasury Department and is determined by their policies and calculations.  While it is true in most recent years this amount has been the same as the personal exemption amount, the personal exemption amount is not the determining factor when arriving at the amount to be used in this calculation.  The amount given on line 8 of the Form W-4, Employee’s Withholding Allowance Certificate is correct as stated.
Thank you for bringing your concern to our attention.

IRS GuideWire

IRS Form 941 & 944

TD 9440 - contains temporary regulations relating to the annual filing of Federal employment tax returns and requirements for employment tax deposits.  These temporary regulations relate to sections 6011 and 6302 of the Internal Revenue Code (Code) concerning reporting and paying income taxes withheld from wages and reporting and paying taxes under the Federal Insurance Contributions Act (FICA) (collectively, “employment taxes”).  These temporary regulations generally allow certain employers to file a Form 944, “Employer’s ANNUAL Federal Tax Return,” rather than Form 941, “Employer’s QUARTERLY Federal Tax Return.”  In addition to rules related to Form 944, the temporary regulations provide an additional method for employers who file Form 941 to determine whether the amount of accumulated employment taxes is considered de minimis.  The portions of this document that are final regulations provide necessary cross-references to the temporary regulations. 
REG 148568-04 - revises the notice of proposed rulemaking published in the Federal Register on January 3, 2006.  In the Rules and Regulations section of this issue of the Federal Register, the IRS is issuing temporary regulations relating to the annual filing of Federal employment tax returns and requirements for employment tax deposits under sections 6011 and 6302 of the Internal Revenue Code (Code).  Those temporary regulations generally allow certain employers to file a Form 944, “Employer’s ANNUAL Federal Tax Return,” rather than Form 941, “Employer’s QUARTERLY Federal Tax Return.”  In addition to rules related to Form 944, those temporary regulations provide an additional method for employers who file Form 941 to determine whether the amount of accumulated employment taxes is considered de minimis.  The temporary and proposed regulations affect taxpayers that file Form 941, "Employer's QUARTERLY Federal Tax Return," Form 944, "Employer's ANNUAL Federal Tax Return," and any related Spanish-language returns or returns for U.S. possessions.  The text of those regulations also serves as the text of these proposed regulations.   
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, Employer’s Annual Federal Tax Return, who wish to request to file Forms 941, Employer’s Quarterly Federal Tax Return, instead for tax year 2009. 
Revenue Procedure 2009-13 will be in IRB 2009-3, dated January 21, 2009. 
The new Form 941-X and instructions both posted this morning on irs.gov. 

0109 Form 941-X (PDF) Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund (6.6K) PDF  

0109 Inst 941-X (PDF) Instructions for Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund (6.6K) PDF             

As the other forms post (e.g., Form 943-X), you will be able to find them on the links on this web page: 
Shortcut to: http://www.irs.gov/businesses/small/article/0,,id=187188,00.html 
Tax Return Preparer Penalties

TD 9436 contains final regulations implementing amendments to the tax return preparer penalties under sections 6694 and 6695 of the Internal Revenue Code (Code) and related provisions under sections 6060, 6107, 6109, 6696, and 7701(a)(36) reflecting amendments to the Code made by section 8246 of the Small Business and Work Opportunity Tax Act of 2007 and section 506 of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008. The final regulations affect tax return preparers and provide guidance regarding the amended provisions.

Notice 2009-05 provides guidance regarding implementation of the tax return preparer penalty under section 6694(a) of the Internal Revenue Code, as amended by the Tax Extenders and Alternative Minimum Tax Relief Act of 2008, Div. C. of Pub. L. No. 110-343, 122 Stat. 3765 (October 3, 2008) (the 2008 Act).    

Qualified Tuition Program

Notice 2009-01 modifies Notice 2001-55, 2001-2 CB 299, and provides that a section 529 program (qualified tuition program) does not violate the investment restriction under section 529(b)(4) if it permits a participant to change investment strategy selected for a section 529 account twice during calendar year 2009.  A change in investment strategy upon a change in the designated beneficiary of the account continues to be permitted as under Notice 2001-55.   

Notice 2009-01 will appear in IRB 2009-2, dated Jan. 12, 2009.  

Large & Mid-Size Business Division - Pre-filing Agreement - Closing Agreements
Revenue Procedure 2009-14 supersedes Rev. Proc. 2007-17, 2007-4 I.R.B. 368, provides guidance that makes the existing Pre-Filing Agreement (PFA) program permanent. 
Revenue Procedure 2009-14 will appear in IRB 2009-3, dated January 21, 2009.  
Domestic Partnerships
Notice 2009-07 designates a Transaction of Interest and outlines the disclosure requirements for situations where a domestic partnership is used to prevent the inclusion of subpart F income.  The notice also indicates that these structures may be challenged under current regulatory authority or judicial doctrines. 
Notice 2009-07 will appear in IRB 2009-3 dated Jan. 20, 2009. 
457A issues
Notice 2009-08 provides interim guidance on recently enacted § 457A which became effective January 1, 2009.  Section 457A generally provides that compensation deferred under a nonqualified deferred compensation plan of a nonqualified entity is includible in gross income when there is no substantial risk of forfeiture of the right to such compensation.  For this purpose, the term nonqualified deferred compensation plan has the meaning provided under § 409A(d), subject to some modifications, and the term nonqualified entity means (a) any foreign corporation unless substantially all of its income is (i) effectively connected with the conduct of a trade or business in the U.S., or (ii) subject to a comprehensive foreign income tax, and (b) any partnership unless substantially all of its income is allocated to persons other than (i) foreign persons with respect to whom such income is not subject to a comprehensive foreign income tax, and (ii) tax-exempt organizations.  The guidance focuses on identifying which plans are covered by § 457A, including identifying the plan sponsor and whether the sponsor is a nonqualified entity.  
Notice 2009-08 will appear in IRB 2009-4, dated January 26, 2009.  
Other Regulations
TD 9439 - contains final regulations relating to disclosures of corporate tax return information to the Bureau of Economic Analysis (Bureau).  The final regulations authorize the IRS to disclose certain items of corporate tax return information to the Secretary of Commerce for purposes of structuring United States national economic accounts and conducting related statistical activities authorized by law.  The final regulations facilitate the assistance of the IRS to the Bureau in its statistics programs, require no action by taxpayers, and have no effect on their tax liabilities. 
REG-150066-08 - In the Rules and Regulations section of this issue of the Federal Register, the IRS and Treasury Department are issuing temporary regulations relating to foreign base company sales income, in cases in which personal property sold by a controlled foreign corporation (CFC) is manufactured, produced, or constructed pursuant to a contract manufacturing arrangement or by one or more branches of the CFC.  The temporary regulations modify the foreign base company sales income regulations to adequately address current business structures and practices, particularly the growing importance of contract manufacturing and other manufacturing arrangements.  The temporary regulations, in general, will affect CFCs and their United States shareholders.  The text of the temporary regulations also serves as the text of the proposed regulations.  This document also provides notice of a public hearing. 
TD 9438 - contains final and temporary regulations that provide guidance relating to foreign base company sales income in cases in which personal property sold by a controlled foreign corporation is manufactured, produced, or constructed pursuant to a contract manufacturing arrangement or by one or more branches of the controlled foreign corporation.  These regulations modify the foreign base company sales income regulations to address current business structures and practices, particularly the growing importance of contract manufacturing and other manufacturing arrangements.  These regulations, in general, will affect controlled foreign corporations and their United States shareholders.  

Retirement News for Employers
Special Edition, January 2009
2009 Waiver of Required Minimum Distribution (RMD)
This Special Edition discusses the Worker, Retiree, and Employer Recovery Act of 2008 and the waiver of any required minimum distribution (RMD) for 2009 from retirement plans that hold each participant’s benefit in an individual account, such as 401(k) plans and 403(b) plans, and certain 457(b) plans. 
In addition, please help us to better serve you! Complete our SURVEY on Employee Plans’ newsletter for small business owners, Retirement News for Employers. 
To read the January 2009 Special Edition, please access the newsletter file directly or visit the Current Edition of the Employee Plans News page in the Retirement Plans Community section of the IRS.gov Web site. 
More on the waiver
Notice 2009-09 provides guidance to financial institutions on the reporting rules applicable to required minimum distributions (“RMDs”) for 2009 in light of the enactment of the Worker, Retiree, and Employer Recovery Act of 2008, P.L. 110-458 (the Act).  Section 201 of the Act waives any RMDs for 2009 from individual retirement arrangements (IRAs) and retirement plans that hold participant benefits in individual accounts.  This notice modifies the reporting requirements applicable to RMDs from IRAs to reflect the waiver of the RMD rules for 2009. 
Notice 2009-09 will be in IRB 2009-5, dated February 2, 2009.  

Things of interest.......

IRS Announces New Mileage Rate

In News Release 2008-131, the IRS announced the optional business standard mileage rate at 55 cents beginning January 1, 2009. The rate had been 58.5 cents per mile for the period from July 1, 2008 through December 31, 2008.
A reimbursement to employees up to this rate for qualifying use of their own vehicles will meet the requirements of an accountable plan for reimbursement of employee business expenses.
Full details, including the requirements to use the standard mileage rate, are available in Revenue Procedure 2008-72.
Have You Received a Letter on the New Withholding?

The IRS has sent a letter to larger units of local government to alert them to the new requirement under Internal Revenue Code section 3402(t) to withhold 3% from certain payments beginning in 2011.
The letter was sent to governmental entities that were identified as possibly subject to the new law. These include units of local government that have certain payments of $100 million or more per year.
The letter is advisory only and no response is necessary. It refers to the Proposed Regulations published December 5, 2008, for more information and comment procedures. There is a more detailed article on the provisions this website.

Exclusion of Certain Benefits for Firefighters and Emergency Responders
New Exclusion of Certain Benefits for Firefighters and Emergency Responders
New laws provide a special tax benefit for firefighters and emergency responders.

Reminder: Rules for Emergency Workers
Special rules for social security and Medicare coverage may apply.
Resources......a must look!
New Revision of Publication 963 
FSLG has released the November 2008 edition of Publication 963, Federal-State Reference Guide.
And as always.....bookmark these links
http://www.irs.gov/govt/fslg/topic/index.html
http://www.irs.gov/govt/fslg/content/0,,id=117706,00.html
http://www.irs.gov/govt/fslg/article/0,,id=103384,00.html

Thanks for listening......Have a great evening

Karen Park
State Social Security Coordinator
Oregon PERS
503 603-7633
karen.park at state.or.us

SL2
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