Home » Posts tagged 'IRS tax forms' (Page 9)
Tag Archives: IRS tax forms
Finally a Tax Law Change That Will Make Our Lives Easier. Well, unless you are a stock broker or mutual fund company that is. 1099-B Reporting Expanded
Mutual Fund
Stacie says: Good news for taxpayers who receive Forms 1099-B Broker and Barter Exchange Transactions. Starting in 2011, these forms will include the cost or other basis information of stock and mutual fund shares sold or exchanged during the year. I can’t tell you how happy this makes me. Countless hours are spent each year by preparers and taxpayers alike trying to find the basis information on stock sales. I have to say that this law change falls within one of my more favored.
WASHINGTON — The Internal Revenue Service today issued final regulations under a law change that will require reporting of basis and other information by stock brokers and mutual fund companies for most stock purchased in 2011 and all stock purchased in 2012 and later years. The reporting will be to investors and the IRS. This additional reporting will be optional for stock purchased prior to these dates.
“This important reporting change means investors will now receive the information they need to more easily and accurately report their gains and losses,” said IRS Commissioner Doug Shulman. “We will continue to work closely with stakeholder groups to ensure a smooth implementation of the new requirement, which reduces the recordkeeping and paperwork burden for millions of taxpayers.”
These regulations, posted today in the Federal Register, implement a provision in the Energy Improvement and Extension Act of 2008. Among other things, the regulations describe who is subject to this reporting requirement, which transactions are reportable and what information needs to be reported. Besides providing numerous examples, they also adopt a number of comments and suggestions received since the proposed regulations were issued last December.
Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, long used to report sales prices, will be expanded in 2011 to include the cost or other basis of stock and mutual fund shares sold or exchanged during the year. Stock brokers and mutual fund companies will use this form to make these expanded year-end reports. The expanded form will also be used to report whether gain or loss realized on these transactions is long-term (held more than one year) or short-term (held one year or less), a key factor affecting the tax treatment of gain or loss. The expanded form, to be first used for calendar-year 2011 sales, must be filed with the IRS and furnished to investors in early 2012.
The IRS today also announced penalty relief for brokers and custodians for reporting certain transfers of stock in 2011.
The relief is described in Notice 2010-67, which was posted today on IRS.gov.
Related Articles
- Special investment taxes: mutual fund capital gains and ‘Flash Crash’ earnings (dontmesswithtaxes.typepad.com)
- Waiting…For Your Tax Forms? (turbotax.intuit.com)
- 5 Things You Don’t Know About 529 Plans (money.usnews.com)
- Cost Basis: Tracking Your Tax Basis (turbotax.intuit.com)
- What are all those W-2s and 1099s and 1098s? (turbotax.intuit.com)
- A Tax Cut Everyone Can Agree on (fool.com)
- Fund investors continue to favor bonds over stocks (seattletimes.nwsource.com)
- DTCC Enhances Mutual Fund Profile Service To Improve Integrity of Data for the Fund Industry (eon.businesswire.com)
- What is the Best Roth IRA Broker? (bargaineering.com)
- When Your Investment Losses Really Arenât (at Least in the Eyes of the IRS) (turbotax.intuit.com)
- IRS Won’t Defer Your “Flash Crash” Gains (blogs.forbes.com)
- 5 Things Your Broker Won’t Tell You (money.usnews.com)
IRS Presents:Ten Things Tax-Exempt Organizations Need to Know About the Oct. 15 Due Date (This is a how to on keeping your exempt status)
Image via Wikipedia
Stacie says: This tax tip is some particularly good information from the IRS for tax exempt organizations to help them keep their exempt status. The time period to fix your delinquent Form 990 filings for years 2007, 2008 or 2009 will expire on October 15. That’s just a few more days. You are encouraged to take advantage and keep your tax exempt status.
A crucial filing deadline of Oct. 15 is looming for many tax-exempt organizations that are required by law to file their Form 990 with the Internal Revenue Service or risk having their federal tax-exempt status revoked. Nonprofit organizations that are at risk can preserve their status by filing returns by Oct. 15, 2010, under a one-time relief program.
The Pension Protection Act of 2006 mandates that most tax-exempt organizations must file an annual return or submit an electronic notice, with the IRS and it also requires that any tax-exempt organization that fails to file for three consecutive years automatically loses its federal tax-exempt status.
Here are 10 facts to help nonprofit organizations maintain their tax-exempt status.
- 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.
- Among the organizations that could lose their tax-exempt status are local sports associations and community support groups, volunteer fire and ambulance associations and their auxiliaries, social clubs, educational societies, veterans groups, church-affiliated groups, groups designed to assist those with special needs and a variety of others.
- A list of the organizations that were at-risk as of the end of July is posted at IRS.gov along with instructions on how to comply with the new law.
- 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 and a voluntary compliance program for small organizations eligible to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.
- Small tax-exempt organizations with annual receipts of $25,000 or less can file an electronic notice Form 990-N also known as the e-Postcard. To file the e-Postcard go to the IRS website and supply the eight information items called for on the form.
- Under the voluntary compliance program, tax-exempt organizations eligible to file Form 990-EZ must file their delinquent annual information returns by Oct. 15 and pay a compliance fee.
- The relief is not available to larger organizations required to file the Form 990 or to private foundations that file the Form 990-PF.
- Organizations that have not filed the required information return by the extended Oct. 15 due date will have their tax-exempt status revoked.
- If an organization loses its exemption, it will have to reapply with the IRS to regain its tax-exempt status and any income received between the revocation date and renewed exemption may be taxable.
- Donors who contribute to at-risk organizations are protected until the final revocation list is published by the IRS.
Links:
One-Time Filing Relief for Small Organizations That Failed to File for Three Consecutive Years
Filing Relief/Voluntary Compliance Program – 990-EZ Filers
IR-2010-101: Taxpayers Face Oct. 15 Deadlines: Due Dates for Extension Filers, Non-Profits Approach
YouTube Videos:
Small Tax-Exempt Orgs Revised Deadline: English
Time Is Running Out – Three Deadlines: English
Related Articles
- October 15 Deadline Looming for Nonprofits at Risk of Losing Their Tax-Exempt Status (prweb.com)
- IRS seeking tax returns from small nonprofits (knoxnews.com)
- Thousands of Mass. Nonprofits Risk Losing Tax-Exempt Status (thenon-profittoolbox.com)
- Tax-Exempt Status: Help the IRS Help You (thenon-profittoolbox.com)
- As a small nonprofit — did you file your Form 990? (chicagonow.com)
- O’Donnell Non-Profit May Lose Tax-Exempt Status For Failing To File Proper Tax Forms (alan.com)
- Keeping Your Exempt Status (thenon-profittoolbox.com)
- Tax Exempt Interest and your 2006 Form 1009-INT (turbotax.intuit.com)
Stacie's Tax Stuff 