December 19, 2008
Exclusion from Income for Certain Cancellation of Debt on Principal Residence:
The Mortgage Forgiveness Debt Relief Act of 2007 allows individuals to exclude from gross income a discharge of qualified principal residence indebtedness. This exclusion applies to discharges made after 2006 and before 2010. Additionally, the basis of the principal residence must be reduced (but not below zero) by the amount excluded from gross income. To claim the exclusion, you must file Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), with your tax return. For further information, refer to Exclusion from Income for Certain Cancellation of Debt on Principal Residence or keyword “Cancellation of Debt”.
Disregarded Entities for Purposes of Employment Tax:
For wages paid on or after January 1, 2009, single member/single owner limited liability companies (LLCs) that have not elected to be treated as corporations may be required to change the way they report and pay federal employment taxes and wage payments. On Aug. 16, 2007, changes to Treasury Regulation Section 301.7701-2 were issued. The new regulations state that the LLC, not its single owner, will be responsible for filing and paying all employment taxes on wages paid on or after Jan. 1, 2009. Thus, employment taxes must be reported and paid in the name and EIN of the LLC. An LLC may secure an EIN by applying online at IRS.gov or by filing Form SS-4, Application for Employer Identification Number. For more information, refer to Headliner Volume 252, November 13, 2008 or keyword “Headliner 252”.
EITC Awareness Day - Fri., Jan. 30, 2009:
The IRS is asking employers, small business organizations and tax professionals to help us alert employees about a valuable tax credit that could put up to $4,824 in their pockets. Workers, who earned less than $41,646 in 2008, may qualify for the Earned Income Tax Credit, or EITC. However, IRS estimates that up to one in four qualifying individuals will fail to claim and receive the credit. EITC Information for Employers provides links to technical information, communication toolkits and marketing materials. Corporate Voices, a leading nonprofit, nonpartisan organization that represents the private sector on working family policy issues, also publishes a downloadable employer EITC guide on Corporate Voices For Working Families' Web site.
Topic: 2009 Tax Calendar (English & Spanish versions) is out of stock:
Due to the overwhelming demand for the 2009 Small Business Tax Calendar, the inventory of both the English and Spanish versions of the wall calendar has been depleted. IRS outreach efforts to market the calendar resulted in the distribution of 250,000 copies to multiple IRS offices, local stakeholders and partnering organizations.
As an alternative to providing our customers with the 12-month illustrated wall calendar, the online version of the calendar can be viewed and/or printed as a PDF file from the IRS.gov Web site (keyword “Publication 1518”).
Rate the Small Business and Self-Employed Web Site
|