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IRS Patrol: IRS Requests Public Input on Expanded Information Reporting Requirement
Stacie says: You have until September 29, 2010 to tell the IRS your thoughts on expanded reporting requirements for Form 1099 recipients. Check out the ways to submit your comments below:
WASHINGTON — The Internal Revenue Service invited 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.
There are three ways to submit comments.E-mail to:
- Notice.Comments@irscounsel.treas.gov. Include “Notice 2010-51” in the subject line.
- Mail to: Internal Revenue Service, CC:PA:LPD:PR ( Notice 2010-51), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.
- Hand deliver to: CC:PA:LPD:PR ( Notice 2010-51), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC, between 8 a.m. and 4 p.m., Monday through Friday.
The deadline is Sept. 29, 2010. Further details are in Notice 2010-51, posted today on IRS.gov.
Notice 2010-51 invites public comments regarding guidance to be provided to payors and other affected persons concerning new requirements with respect to the reporting of payments made in the course of the payor’s trade or business. Section 6041 of the Internal Revenue Code generally requires information returns to be made by every person who makes payments, as defined in section 6041(a), aggregating $600 or more in any taxable year to a single payee in the course of the payor’s trade or business; new amendments to section 6041 expand reporting to payments of gross proceeds and payments to corporations.
Notice 2010-51 will appear in IRB 2010-29, dated July 19, 2010.
IRS Patrol: Home Buyer Credit – Closing Deadline Extended
Well, I’m a bit late in my reporting of this extension. Sorry about that. We’ve just returned from a really great vacation visiting the grand-baby.
So here it is:
The deadline for the completion of qualifying First-Time Homebuyer Credit purchases has been extended. Taxpayers who entered into a binding contract before the end of April now have until September 30, 2010 to close on the home.
The Homebuyer Assistance and Improvement Act of 2010, enacted on July 2, 2010, extended the closing deadline from June 30 to Sept. 30 for eligible homebuyers 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.
Here are five facts from the IRS about the First-Time Homebuyer Credit and how to claim it.
- If you entered into a binding contract on or before April 30, 2010 to buy a principal residence located in the United States you must close on the home on or before September 30, 2010.
- To be considered a first-time homebuyer, you and your spouse – if you are married – must not have jointly or separately owned another principal residence during the three years prior to the date of purchase.
- To be considered a long-time resident homebuyer, your settlement date must be after November 6, 2009 and you and your spouse – if you are married – must have lived in the same principal residence for any consecutive five-year period during the eight-year period that ended on the date the new home is purchased.
- The maximum credit for a first-time homebuyer is $8,000. The maximum credit for a long-time resident homebuyer is $6,500.
- To claim the credit you must file a paper return and attach Form 5405, First Time Homebuyer Credit, along with all required documentation, including a copy of the binding contract. New homebuyers must attach a copy of the properly executed settlement statement used to complete the purchase. Long-time residents are encouraged to attach documentation covering the five-consecutive-year period such as Form 1098, Mortgage Interest Statements, property tax records or homeowner’s insurance records.
For more information about the First-Time Homebuyer Tax Credit and the documentation requirements, visit IRS.gov/recovery.
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