IRS News

Keeping You On Top of Your Game

As we get more involved in tax season, the IRS releases more and more information about their services. In order to be aware of IRS happenings, we’ve compiled 5 noteworthy news items that the IRS has released in the past two weeks. Hopefully you and your clients will find the information helpful.

The IRS’s E-File System Opened on January 12
The IRS’s electronic filing system is officially open for business. Whether taxpayers use tax preparers, preparation software, or file themselves, on January 12^th they could begin submitting their returns electronically.

“E-file is fastest, safest and most accurate way to file a tax return,” said IRS Commissioner Mark W. Everson. “People will get their refunds faster through e-file. E-file greatly reduces the chances for making an error compared to filing a paper 1040.”

Other e-filing benefits include acknowledgement of IRS receipt within 48 hours, encryption of private tax information, and the ability to file both federal and state taxes in the same sitting.

E-filing is gaining in popularity. Just last year over 50% of the 73 million returns submitted where filed electronically. Compare that to 1996 when the IRS ran their first e-filing pilot program, receiving just 25,000 forms electronically.

IRS Expands its Free File Initiative
On January 16^th the IRS announced the expansion of their Free File Program which they have been running for 5 years now. In partnership with members of the private sector, the IRS allows free filing for tax payers with less than a $52,000 adjusted gross income. While the IRS does not charge tax payers for filing their forms electronically, many tax preparers and software manufacturers do. This partnership allows 70 percent of taxpayers, about 95 million, to enjoy free filing.

“This level of public satisfaction with Free File is just astounding,” IRS Commissioner Mark W. Everson said. “This innovative program provides real value to the taxpayers. Taxpayers will find we’ve made a great program even better this year.”

Publication 17: Filing for Dummies? Not Quite, but it Can Help
The IRS, in attempts to help taxpayers answer tax questions, has created Publication 17, Your Federal Income Tax. The 300 page guide is a compilation of common tax issues facing many taxpayers today. Publication 17 is free and can be accessed at the IRS website.

Go to 1040 Central with Your Filing Questions
The IRS is abounding in tax helps this year. Along with Publication 17, the IRS has also created the website, 1040 Central, which has links to information you might need this year when filing taxes. Regardless of the form people use, they can find help on a number of issues, including the telephone excise tax, tax law changes, refund tracking, current IRS news, access to forms and publications, tax fraud alerts, Frequently Asked Questions, and more.

IRS’s Professor-in-Residence Program Revamped
To revitalize its once dormant Professor-In-Residence Program, Chief Counsel Donald L. Korb recently appointed Calvin H. Johnson, the Andrews & Kurth Centennial Professor of Law at the University of Texas Law School, as his 2007 Professor-In-Residence. This program enables tax academicians the opportunity to contribute their expertise to the development of tax law, policy, and administration. Korb begins his term with the IRS this month.

Another way to keep yourself up to speed is to join the Universal Accounting Forum where you can discuss and chat with others just like you in other parts of the country! Click Here to see what’s happening at the lively and always jumping UAC Forum!