Guidance

This page captures selected IRS issued guidance.  This page may not include all guidance issued during the year.                                                                                                                                                               

*                                                                                                     For 2009 Guidance

______________________________________________________________________________________

2010 Guidance

Announcement 2010-16 Suspends FBAR Filing Requirement for NON US Citizens

Announcement 2010-16 temporarily suspends, for persons who are not United States citizens, United States residents or domestic entities the requirement to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), for the 2009 and earlier calendar years.

Announcement 2010-16 will be published in Internal Revenue Bulletin 2010-11 on March 15, 2010.

Notice 2010-23 Provides FBAR Filing Relief For Some Persons

Notice 2010-23 provides FBAR filing relief for some persons with signature authority and who own commingled funds.  The Notice also modifies and supplements Notice 2009-62.

Notice 2010-23 will be published in Internal Revenue Bulletin 2010-11, on March 15, 2010.

 

Revenue Procedure 2010-15    Identifies Circumstances Reducing Understatement of Income Tax Penalty and Related  Disclosures on a Taxpayers Return

Revenue Procedure 2010-15 updates Rev. Proc. 2008-14, 2008-1, C.B. 435, and identifies circumstances under which the disclosure on a taxpayer’s income tax return with respect to an item or a position is adequate for purpose of reducing the understatement of income tax under section 6662(d) of the Internal Revenue Code; (relating to the substantial understatement aspect of the accuracy-related penalty), and for the purpose of avoiding the tax return preparer penalty under section 6694(a) (relating to understatements due to unreasonable positions) with respect to income tax returns. 

 

Notice 2010-16 Designates Haiti Earthquake as Qualified Disaster

Notice 2010-16 designates the Haiti earthquake occurring in January 2010 as a qualified disaster for purposes of § 139 of the Internal Revenue Code.

Notice 2010-16 will be published in Internal Revenue Bulletin 2010-06 on February 8, 2010.

Q&A With Respect to Certain Provisions of the Heroes Earnings Assistance and Relief Tax Act of 2008 – HEART ACT

Notice 2010-15 provides guidance in the form of questions and answers with respect to certain provisions of the Heroes Earnings Assistance and Relief Tax Act of 2008 (“HEART Act”). The notice also requests comments regarding any additional issues relating to the sections of the HEART Act that are addressed in the notice. 

Notice 2010-15 will appear in IRB 2010-6 dated Feb. 8, 2010.

Guidance – Rev Proc 2010-13 Grouping and Regrouping of Passive Activities to Meet the Material Participation Standards.

Revenue Procedure 2010-13 requires taxpayers to report to the Internal Revenue Service their groupings and regroupings of activities and the addition of specific activities within their existing groupings of activities for purposes of section 469.

Internal Revenue Code Section 469 generally provides that income, losses, and credits from an activity will be passive unless the taxpayer materially participates in the activity. Treasury Regulation Section 1.469-4 allows taxpayers to group activities provided they make up an appropriate economic unit to enable taxpayers to meet the material participation standards.

Revenue Procedure 2010-13 will be published in Internal Revenue Bulletin 2010-4 on January 25, 2010. 

Guidance – Tax return preparer liable for criminal and civil penalties under Internal Revenue Code sections 7216 

Revenue Ruling 2010-05 provides guidance on whether a tax return preparer is liable for criminal and civil penalties under Internal Revenue Code sections 7216 and 6713 when the tax return preparer discloses (1) to a professional liability insurance carrier tax return information required by the insurance carrier to obtain or maintain professional liability insurance coverage; (2) to a professional liability insurance carrier tax return information required by the insurance carrier to promptly and accurately report a claim or a potential claim against the tax return preparer, or to aid in the investigation of a claim or potential claim against the tax return preparer; (3) to a professional liability insurance carrier tax return information to the preparer’s professional liability insurance carrier in order to obtain legal representation under the terms of the insurance policy; or (4) tax return information to an unrelated attorney for the purpose of evaluating a claim or potential claim against the tax return preparer.

Both Revenue Ruling 2010-04 & Revenue Ruling 2010-05 will be published in IRB 2010-4.

Guidance – Tax return preparer liable for criminal and civil penalties under Internal Revenue Code sections 7216 

Revenue Ruling 2010-04 provides guidance on whether a tax return preparer is liable for criminal and civil penalties under Internal Revenue Code sections 7216 and 6713 when the tax return preparer uses tax return information to contact taxpayers to inform them of changes in tax law that could affect the taxpayers’ income tax liability reported in tax returns previously prepared or processed by the tax return preparer; uses tax return information to determine which taxpayers’ future income tax return filing obligations may be affected by a prospective change in tax rule or regulation and to contact such taxpayers to notify them of the changed rule or regulation, explain how the change may affect them, and advise them with regard to actions they may take in response to the change; or discloses tax return information contained in the list permitted to be maintained by the tax return preparer under section 301.7216-2(n) to a third-party service provider that creates, publishes, or distributes, by mail or e-mail, tax information and general business and economic information or analysis for educational purposes or for purposes of soliciting additional tax return preparation services for the tax return preparer, for the purpose of obtaining the ‘newsletter’ creation, publication, and or distribution services offered by the third-party service provider.

Guidance – Electronic Filing Waiver Request Procedures Forms 1120, 1120-F, 1120S, 990, and 990-PF

Notice 2010-13 updating the procedures for requesting a waiver of the requirement to electronically file returns when required by regulations and IRS publications. This notice affects corporations and tax-exempt organizations that file Form 1120, U.S. Corporation Income Tax Return; Form 1120-F, U.S. Income Tax Return of a Foreign Corporation; Form 1120S, U.S. Income Tax Return for an S Corporation; Form 990, Return of Organization Exempt From Income Tax; Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as a Private Foundation, and returns, amended returns and superseding returns in the Form 1120 and 990 family of returns that are required to be electronically filed. The notice also reduces the perfection period for rejected e-file returns from 20 to 10 days.

Notice 2010-13 will appear in Internal Revenue Bulletin 2010-4, dated Jan. 25, 2010.

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