Tax Information For Corporations | |
Forms 5471 - Automatic Assessment of Penalties under IRC Section 6038(b)(1) Beginning January 1, 2009, the Internal Revenue Service Center will automatically assert appropriate penalties on late filed Forms 1120 with Forms 5471 attached. Taxpayers are encouraged to submit delinquent Forms 5471 prior to January 1, 2009. Draft Forms 1120 and 1065 and Related Schedules and Instructions for 2008 Draft Forms 1120 and 1065, and related schedules and instructions have been released for tax years ending on or after 12-31-2008. The changes are designed to increase the transparency of the relationship between entities that make up complex business enterprises. Understanding the Large and Mid-Size Business (LMSB) Examination Process This comprehensive guide gives detailed information about the entire examination process for large and mid-size businesses, from the multiple steps of the pre-audit planning process to the examination of books and records through the closing and Appeal processes. e-file for Large and Mid-Size Corporations Certain large and mid-size corporations are required to electronically file their Forms 1120 and 1120S. Other corporations may do so voluntarily. This site provides e-file information for corporations that prepare and transmit their own electronic corporate income tax returns and those that use the services of third party tax professionals. The International Tax Gap Find resources on this page pertaining to the international tax gap — the difference between the amount of tax that taxpayers should pay and the amount that is paid voluntarily and on time. The tax gap can also be thought of as the sum of non-compliance with the tax law. Income from Abroad is Taxable There have been recent reports about the interest of the Internal Revenue Service (IRS) in taxpayers with bank accounts in Liechtenstein. The IRS' interest, however, extends beyond bank accounts in Liechtenstein to financial accounts anywhere in the world. The IRS reminds you to report your worldwide income on your U.S. tax return and lists the possible consequences of hiding income overseas. U.S./Germany Tax Treaty Modified to Include Mandatory Arbitration in Certain Circumstances A new Protocol modifying certain provisions of the income tax treaty between the U.S. and Germany came into force on Dec. 28, 2007. It modifies Article 25 Mutual Agreement Procedure (MAP) to provide for mandatory arbitration of certain cases in the MAP. This announcement provides interim guidance for the “commencement date” for MAP case arbitration until a formal mutual agreement is published. Industry Issue Focus The Large and Mid-Size Business Division (LMSB) of the IRS is implementing an Industry Issue Focus (IIF) approach to compliance as part of its overall issue management strategy. Under this approach, issues are identified and prioritized based on industry impact and level of compliance risk. Filing Requirements for Filing Status Change Guidance for taxpayers requesting to change their filing status from a C Corporation (filing Form 1120) to an S Corporation (filing Form 1120S). IRS Issues Final Versions of 2007 Form 1120-F and New Schedule M-3 (1120-F) The Internal Revenue Service has released final versions of the revised Form 1120-F, U.S. Income Tax Return of a Foreign Corporation, for tax year 2007, and related schedules, including Schedule M-3, new for tax years ending on or after December 31, 2007. FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" FIN 48 is intended to eliminate inconsistency in accounting for uncertain tax positions in financial statements certified in accordance with U.S. GAAP and mandates new rules for recognition, de-recognition, measurement, and disclosure of tax positions. Schedule M-3 for Large and Mid-Size Businesses Schedule M-3 is used by certain corporations and partnerships to reconcile financial accounting net income and taxable income. Affected corporations and partnerships are those with assets of $10 million or more that file Form 1120, 1120-PC, 1120-L, 1120S, or 1065. Certain other partnerships filing Form 1065 are also required to use the Schedule M-3. Abusive Tax Shelters and Transactions The Internal Revenue Service has a comprehensive strategy in place to combat abusive tax shelters and transactions. This strategy includes guidance on abusive transactions, regulations governing tax shelters, a hotline for taxpayers to use to report abusive technical transactions, and enforcement activity against abusive tax shelter promoters and investors. Industry Issue Resolution Program The Industry Issue Resolution (IIR) Program resolves frequently disputed or burdensome tax issues. IRS solicits suggestions for issues for the program from taxpayers, representatives and associations. Fast Track Settlement The LMSB / Appeals Fast Track Settlement program is a joint effort between the Large and Mid-Size Business (LMSB) Division and Appeals to use the mediation skills and delegated settlement authority of Appeals to resolve issues while still under LMSB jurisdiction. Pre-Filing Agreement Program The Pre-Filing Agreement Program is expected to reduce taxpayer burden and make more effective use of IRS resources by resolving or eliminating tax controversy earlier in the examination process. LMSB Technical Resources and Guidance Coordinated issue papers, Industry Director guidance, audit technique guides and other documents provide technical information and guidance on complex tax law and administrative issues affecting the LMSB division and LMSB taxpayers. Corporate Executive Compliance The Internal Revenue Service is taking steps to improve tax compliance by corporations and their executive employees. One area of emphasis is executive compensation, for which audit technique guides have been developed for use by agents in examining tax returns filed by corporations and executives. Limited Issue Focused Examination (LIFE) The IRS Large and Mid-Size Business (LMSB) Division is implementing a new streamlined examination process. International Businesses Provides links to information on a variety of International topics including Tax Treaties, Know-Your-Customer (KYC) Rules, Transfer Pricing and Qualified Intermediaries (QI). S Corporations An eligible domestic corporation can avoid double taxation (once to the shareholders and again to the corporation) by electing to be treated as an S corporation. Small Business/Self-Employed (SB/SE) Division This division serves businesses with less than $10 million in assets. Appeals The Appeals Office resolves tax controversies, without litigation, on a basis that is fair and impartial to both the Government and the taxpayer. Index of LMSB Industry Overviews The LMSB Industry Overview Series, designed to provide LMSB employees greater awareness of various industries, contain information on industry background, trends, and terms, accounting principles, information systems, industry operating procedures, government regulatory requirements, significant law and important issues and industry resources. IRS's Large and Mid-Size Business Division is Seeking Qualified Candidates for Available Positions! LMSB is seeking to fill 100 technical GS-11, GS-12, and GS-13 positions nationwide, including Economists and Internal Revenue Agents (International Examiner, Financial Products & Transactions Examiner, and Team Member/Domestic Agent) with entry on-duty dates planned for March and April 2009. |
Page Last Reviewed or Updated: October 29, 2008