News
Alex Cooper, SBDC Analyst, honored with achieving “Highest Economic Impact” in the AZSBDC Network. Click the link below to read article
PR State Network Honors Top Performers
MAC’s Debbie Chandler on 790 KNST’s “Talk of Tucson” with Paul Birmingham
Check out new articles about MAC on AzBiz.com
AzBiz.com has just released two articles featuring The Microbusiness Advancement Center. Click on the links to check them out.
Small Business Guide for the 2009 Ride
Goverment Is a Small-Business Client
IRS News Releases & Announcements
Announcements & Upcoming Events:
Small Business Educational Opportunities
In collaboration with the Arizona Service Providers Network, the Arizona Department of Commerce Small Business Services division hosts an “Event Calendar.” You may access our online calendar through the Small Business Services home page at www.azcommerce.com/smallbiz under Quick Links.
The objective of the Small Business Calendar of Events is to support business events, seminars and/or workshops that our Arizona Service Providers Network offers to the small, women and minority businesses in Arizona. Typically, the events posted are free or of a nominal fee.
Free IRS Phone Forum: Abusive Tax Avoidance Transactions and Emerging Issues
http://www.irs.gov/retirement/article/0,,id=218995,00.html
August 27, 2010
11:00 am Pacific Time
Abusive Tax Avoidance Transactions and how they can threaten saving for retirement will be discussed. The Forum will focus on potential abusive schemes and new emerging issues including insurance funded plans, schemes involving defined benefit pension plans, S Corporation ESOP abuses, ROBS compliance issues, reversion and distribution schemes, management company promotions, abuses involving union plans and other issues of concern. See the link above for how to register.
HIRE Act Archived Webinar Now Available
http://www.visualwebcaster.com/IRS/69705/event.html
This webinar was originally presented on July 8, 2010. The topic was the HIRE payroll tax exemption and retention income tax credit. The webinar covered who qualifies as an eligible individual for each benefit, what businesses may claim each benefit, and how businesses can claim the HIRE benefits.
IRS Updates & News Releases:
IRS Requests Public Input on Expanded Information Reporting Requirement
http://www.irs.gov/newsroom/article/0,,id=225029,00.html
The Internal Revenue Service invites public comment on how to most effectively carry out a law change that, starting in 2012, will require businesses to report a wider range of payments to contractors, vendors and others, usually on Form 1099. These comments will help the IRS issue guidance that implements this provision in a manner that minimizes burden and avoids duplicate reporting. Under a proposed regulation, many business purchases made with credit or debit cards would be exempt from the new reporting requirement because they are already reported by banks and other payment processors. The IRS seeks comments on additional circumstances in which duplicate reporting might otherwise occur and on rules that would prevent such duplicate reporting. The change, enacted in March but not effective until 2012, expanded existing reporting requirements to include a business’s payments related to goods and other property, and payments to most corporations. With some exceptions, payments to corporations are currently exempt from this requirement.
See the full article for the three ways to submit comments. The deadline is Sept. 29, 2010. Further details are in Notice 2010-51.
IRS Removes Debt Indicator for 2011 Tax Filing Season
http://www.irs.gov/newsroom/article/0,,id=226310,00.html
Starting with next year’s tax filing season IRS will no longer provide tax preparers and associated financial institutions with the “debt indicator,” which is used to facilitate refund anticipation loans (RALs). The IRS has been reviewing refund settlement products, such as RALs and Refund Anticipation Checks (RACs), as part of the Return Preparer Review released in January. RALs are loans secured by a taxpayer’s anticipated tax refund. Currently, tax preparers who electronically submit a client’s tax return receive in the acknowledgment file an indication of whether an individual taxpayer will have any portion of the refund offset for delinquent tax or other debts, such as unpaid child support or delinquent federally funded student loans. This acknowledgment is known as the debt indicator, and is used as an underwriting tool for RALs.
“As we prepare for tax season every year, we look at past practices and consider whether they still make sense. We no longer see a need for the debt indicator in a world where we can process a tax return and deliver a refund in 10 days,” IRS Commissioner Doug Shulman said. “We encourage taxpayers to use e-file with direct deposit so they can get their refunds in just a few days. Refund Anticipation Loans are often targeted at lower-income taxpayers. With e-file and direct deposit, these taxpayers now have other ways to quickly access their cash.”
IRS Releases Proposed Regulations Related to Fees for Preparer Tax Identification Numbers
http://www.irs.gov/newsroom/article/0,,id=225875,00.html
The Internal Revenue Service today released proposed regulations that would establish a fee for individuals who apply for a preparer tax identification number (PTIN). Proposed regulations that were issued in March would require certain tax return preparers to obtain a PTIN. The IRS is working to finalize those proposed regulations, which are the first of a series of steps planned to increase oversight of federal tax return preparation.
The proposed regulations (REG-139343-08) would establish a fee of $50, payable to the IRS, to cover technology costs, as well as compliance and outreach efforts associated with the new PTIN program. The proposed regulations would also provide for an additional fee (expected to be substantially lower than $50) to be charged by the third-party vendor chosen to operate the new online system. That fee amount is expected to be announced soon, as well as additional details about the launch of a new online application system. These fees could change in future years as program costs are reevaluated.
IRS Offers One-Time Special Filing Relief Program for Small Charities; Oct. 15 Due Date to Preserve Tax-Exempt Status
http://www.irs.gov/newsroom/article/0,,id=225959,00.html
Small nonprofit organizations at risk of losing their tax-exempt status because they failed to file required returns for 2007, 2008 and 2009 can preserve their status by filing returns by Oct. 15, 2010, under a one-time relief program. The IRS posted on a special page of IRS.gov the names and last-known addresses of these at-risk organizations, along with guidance about how to come back into compliance. The organizations on the list have return due dates between May 17 and Oct. 15, 2010, but the IRS has no record that they filed the required returns for any of the past three years. Two types of relief are available for small exempt organizations — a filing extension for the smallest organizations required to file Form 990-N, Electronic Notice (e-Postcard) , and a voluntary compliance program (VCP) for small organizations eligible to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.
Six Tax Tips for New Business Owners
http://www.irs.gov/newsroom/article/0,,id=172970,00.html
Are you opening a new business this summer? The IRS has many resources available for individuals that are opening a new business. See the article for six tax tips the IRS wants new business owners to know, such as tips on the different types of business entities, general types of business taxes, when an Employer Identification Number is needed, recordkeeping, and choosing an accounting period and method.
Seven Things to Know about the Taxpayer Advocate Service
http://www.irs.gov/newsroom/article/0,,id=226047,00.html
The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service. TAS helps taxpayers who are experiencing economic harm such as not being able to provide necessities like housing, transportation, or food, taxpayers who are seeking help in resolving problems with the IRS, and those who believe an IRS system or procedure is not working as it should.
Top 10 Things Every Taxpayer Should Know about Identity Theft
http://www.irs.gov/newsroom/article/0,,id=211493,00.html
Taxpayers need to be careful to protect their personal information. Identity thieves use many methods to steal personal information and then they use the information to file a tax return and get a refund. See the full article for 10 things the IRS wants you to know about identity theft so you can avoid becoming the victim of an identity thief.
Closing Deadline Extended to Sept. 30 for Eligible Homebuyer Credit Purchases
http://www.irs.gov/irs/article/0,,id=225078,00.html
Eligible taxpayers who contracted to buy a home, qualifying for the first-time homebuyer credit, before the end of April now have until Sept. 30, 2010 to close the deal, according to the Internal Revenue Service. The Homebuyer Assistance and Improvement Act of 2010, signed by the President today, extended the closing deadline from June 30 to Sept. 30 for any eligible homebuyer who entered into a binding purchase contract on or before April 30 to close on the purchase of the home on or before June 30, 2010. The new law addresses concerns that many homebuyers might be unable to meet the original June 30 closing deadline. The IRS reminds taxpayers that special filing and documentation requirements apply to anyone claiming the homebuyer credit. To avoid refund delays, those who entered into a purchase contract on or before April 30, but closed after that date, should attach to their return a copy of the pages from the signed contract showing all parties’ names and signatures if required by local law, the property address, the purchase price, and the date of the contract.
IRS Issues Regulations on 10-Percent Tax on Tanning Services Effective July 1
http://www.irs.gov/newsroom/article/0,,id=224313,00.html
The Internal Revenue Service today issued regulations outlining the administration of a 10-percent excise tax on indoor tanning services that goes into effect on July 1.
The regulations were published today in the Federal Register. In general, providers of indoor tanning services will collect the tax at the time the purchaser pays for the tanning services. The provider then pays over these amounts to the government, quarterly, along with IRS Form 720, Quarterly Federal Excise Tax Return. The tax does not apply to phototherapy services performed by a licensed medical professional on his or her premises. The regulations also provide an exception for certain physical fitness facilities that offer tanning as an incidental service to members without a separately identifiable fee. The IRS and Treasury Department invite comments.
Nine Tips on the 10 Percent Tax on Tanning Services
http://www.irs.gov/newsroom/article/0,,id=224968,00.html
YouTube Video: Tanning Services Excise Tax: English | ASL
Starting July 1, 2010, many businesses offering tanning services must collect a 10 percent excise tax on the tanning services they provide. This excise tax requirement is part of the Affordable Care Act that was enacted in March 2010. See the full article for nine tips on the tanning excise tax that providers must collect, including which services are subject to the tax, when it much be collected, and how to report it.
For example, did you know?
- If the customer fails to pay the excise tax, the tanning service provider is liable for the tax.
- The tax does not apply to spray-on tanning services.
Do You Need to Amend Your Return?
http://www.irs.gov/newsroom/article/0,,id=172656,00.html
If you forgot to include some income or to take a deduction on your tax return – you can correct it by amending your tax return. In some cases, you do not need to amend your tax return. The Internal Revenue Service usually corrects math errors or requests missing forms – such as W-2s or schedules – when processing an original return. In these instances, do not amend your return. See the article for situations where you should file an amended return.
IRS Highlights Job Opportunities for New Grads on YouTube
http://www.irs.gov/irs/article/0,,id=225245,00.html
The Internal Revenue Service has a new job search tool on YouTube dedicated to helping job seekers learn about employment opportunities at the IRS. As many recent high school and college graduates actively seek employment, the IRS’s new YouTube playlist, Working at the IRS, provides information about various career paths available throughout the nation’s tax administration agency. The playlist features “Day in the Life” videos in which IRS employees discuss their jobs, the diversity of the IRS workforce and the culture of the agency.
IRS Opens Dedicated Phone Line for Gulf Oil Spill Victims
http://www.irs.gov/newsroom/article/0,,id=225434,00.html
The Internal Revenue Service announced the opening of a special telephone line for taxpayers affected by the Gulf oil spill. Individuals who have questions about the BP payments or who are experiencing filing or payment hardships because of the oil spill should contact the IRS at 866-562-5227. The special services phone line will operate weekdays from 7 a.m. to 10 p.m. local time.
Recent Articles from e-News for Small Businesses
National Taxpayer Advocate issues mid-year report to Congress
The National Taxpayer Advocate mid-year report to Congress expresses concern about the new information reporting burdens facing small businesses and certain IRS collection practices. IR-2010-83 has more information.
Resources for small businesses
The IRS.gov Small Business Resources section offers links to a broad range of information from federal and state agencies.
IRS.gov checklists for small businesses
Checklists provide the basic steps to follow when:
Starting a business
Closing a Business
Understanding an IRS notice or letter
The IRS Letters and Notices video provides an overview of how to respond to written contacts from the IRS.
Related link:
Understanding Your IRS Notice or Letter
Online payment agreement application
Paying taxes in full and on time avoids unnecessary penalties and interest. However, if you cannot pay your taxes in full you may request a payment agreement.
Individuals who owe $25,000 or less can use this online application to request a payment agreement.
Small Business Administration centers help small businesses
SBA Small Business Development Centers offer one-stop assistance to individuals and small businesses by providing a wide variety of information and guidance in branch locations.
Subscribe to e-News for Small Businesses
If you would like to receive e-News for Small Businesses, please visit this link to subscribe: http://www.irs.gov/businesses/small/content/0,,id=154826,00.html
Recommend e-News for Small Businesses
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