Tax News

CCH (cch.taxgroup.com) reports:

Pennsylvania has enacted legislation that authorizes the expansion of, and the extension of expiration dates of, Keystone Opportunity Zones (KOZs), Keystone Opportunity Expansion Zones (KOEZs), and Keystone Opportunity Improvement Zones (KOIZs). The legislation also authorizes the creation of additional KOEZs, expands the sales and use tax exemption available to contractors, modifies the corporate net income tax credit apportionment formula, and disqualifies taxpayers who employ illegal workers. Tax benefits available to businesses and residents located in KOZs, KOEZs, and KOIZs include a sales and use tax exemption, a property tax abatement, and credits against corporate and personal income, capital stock and franchise, insurance gross premiums, bank shares, and mutual thrift institutions taxes.

CCH (cch.taxgroup.com) reports:

The IRS has extended, to August 29, 2008, the postponement of the deadlines for victims of storms, flooding and tornadoes in presidential disaster areas in Indiana, Iowa, Illinois, Nebraska, West Virginia and Wisconsin to perform time-sensitive acts. Storm victims in these disaster areas are allowed to postpone until this deadline the filing of certain tax returns, making of certain tax payments and performance of other time-sensitive acts. The IRS had previously extended deadlines in these six states, with six different deadlines applicable to each. The former deadlines were:
--Indiana - August 7 (TAXDAY, 2008/06/16, I.7);
--Iowa - July 28 (TAXDAY, 2008/06/04, I.1);
--Illinois - August 25 (TAXDAY, 2008/06/30, I.8);
--Nebraska - Ausust 19 (TAXDAY, 2008/06/25, I.2);
--West Virginia - August 18 (TAXDAY, 2008/06/25, I.2); and
--Wisconsin - August 13 (TAXDAY, 2008/06/17, I.4).
The deadline for victims in disaster areas in Missouri had previously been extended to August 29 (TAXDAY, 2008/07/03, I.2). Further information regarding the postponement of deadlines due to declared disasters can be found on the IRS website, www.irs.gov.
IR-2008-89, 2008FED ¶46,521
IR-2008-89, FINH ¶30,590
Other References:
Code Sec. 6081
CCH Reference - 2008FED ¶36,789.213
CCH Reference - FINH ¶20,345.80
CCH Reference - FINH ¶20,355.55
Code Sec. 6161
CCH Reference - FINH ¶20,585.35
Code Sec. 7508A
CCH Reference - 2008FED ¶42,687C.22
CCH Reference - FINH ¶22,560.30
Tax Research Consultant
CCH Reference - TRC FILEIND: 15,204.25
CCH Reference - TRC FILEBUS: 15,110

CCH (cch.taxgroup.com) reports:

The IRS has proposed an amendment to Reg. §301.7508A-1 to clarify the rules relating to the postponement of certain tax-related deadlines because of a presidentially declared disaster, terrorist or military actions. The proposed amendment clarifies the scope of relief under Code Sec. 7508A and allows interest to be suspended during the postponement period. The changes reflect amendments to the Code made by the Victims of Terrorism Tax Relief Act of 2001 (P.L. 107-134) and current IRS practice.
The proposed amendment allows the IRS to postpone certain tax-related acts up to one year, up from 90 days. The IRS is also authorized to suspend interest, penalties, additional amounts and additions to tax that normally accrue while a tax-related act is postponed. Moreover, the IRS may grant further relief to taxpayers under Code Sec. 7508A by revenue ruling, revenue procedure, notice, announcement, news release or other guidance. The regulation also clarifies that a postponement of time under Code Sec. 7508A to perform a tax-related act does not extend the due date to perform the act, but merely allows the IRS to disregard a time period of up to one year.
Under the proposed regulation, the postponement period runs concurrently with the extensions of time to file or pay, if any, under other sections of the Code. Thus, when the original due date falls within the postponement period, the taxpayer has until the last day of the postponement period to file for an extension to file or pay, but any resulting extension runs from the original due date. In addition, the relief is specific to the type of extension received. Thus, a taxpayer who received an extension of time to file, but not an extension of time to pay, is eligible only for a postponement of time to file and relief from penalties relating to failure to file, but not for relief from failure to pay penalties as the payment due date was not extended.
Proposed Regulations, NPRM REG-142680-06, 2008FED ¶49,818
Proposed Regulations, NPRM REG-142680-06, FINH ¶41,138
Other References:
Code Sec. 7508A
CCH Reference - 2008FED ¶42,687BD
CCH Reference - FINH ¶22,557
Tax Research Consultant
CCH Reference - TRC FILEBUS: 15,110
CCH Reference - TRC FILEIND: 18,052.20
 

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