Tax News

CCH (cch.taxgroup.com) reports:

  August 15 is the deadline to request a second extension for taxpayers required to pay the Texas revised franchise tax electronically. Taxpayers must use Form 05-164 to request the November 17 extended due date for the 2008 franchise tax report. Combined groups are not required to resubmit the Affiliate List, Form 05-165. More information is available on the Comptroller's Web site at
http://www.window.state.tx.us/taxinfo/franchise/extensions.html.

Release, Office of the Comptroller, August 13, 2008.
 

CCH (cch.taxgroup.com) reports:

  The New York Department of Taxation and Finance has postponed the effective date of the previously announced reversal of its position that a sales tax vendor who sells or rents motor vehicles could use an exempt use certificate when purchasing parking services.  Originally, the effective date of this change was to be September 1, 2008. However, in order to allow a reasonable time for vendors of parking services to implement this change, the effective date of this change is postponed until January 1, 2009. Therefore, vendors of parking services will be required to collect sales tax from vendors who sell or rent motor vehicles on charges made for parking, garaging, or storing motor vehicles beginning January 1, 2009.

  In addition, the Department will not assess sales tax for periods prior to January 1, 2009, if a vendor of parking services accepted a properly completed exemption certificate based upon the information provided in TSB-M-91(7)S, provided the vendor begins collecting sales tax on those services beginning January 1, 2009.

  Subscribers to CCH Tax Research NetWork can view the memorandum.

TSB-M-08(4.1)S, Office of Tax Policy Analysis, Taxpayer Guidance Division, New York Department of Taxation and Finance, August 14, 2008.
 

CCH (cch.taxgroup.com) reports:

  The possibility of a carbon tax in the U.S. is edging closer to becoming a reality as federal officials begin to deal with the effects on the economy of global warming, according to former House Ways and Means senior tax counsel John Gimigliano, who spoke at the KPMG Global Energy Institute web seminar on August 14. Gimigliano, who is now a partner in KPMG's Washington National Tax Practice, helped draft many of the provisions in the Energy Policy Act of 2005 (P.L. 109-58).

  Gimigliano said a tax bill in 2010 could provide an opening for Congress to pass legislation that addresses global warming in a revenue-neutral manner. In 2010, lawmakers must consider capital gains and dividend tax rates, marriage tax penalty relief, estate taxes, child tax credits and the 10-percent tax bracket. In order to keep those provisions from expiring in 2010, Congress might institute a carbon tax that would generate the necessary revenues, Gimigliano suggested. A carbon tax might also pay for renewable energy tax incentives such as wind, biofuel, and solar tax credits.

  By Stephen K. Cooper, CCH News Staff

CCH (cch.taxgroup.com) reports:

  A federal district court lacked subject matter jurisdiction over a corporation's employment tax refund claims because they were untimely filed. For one of the tax years at issue, the refund claim was filed more than ten years after its return was filed and more than two years after its last payment towards its tax liabilities for that year. Further, the corporation failed to demonstrate that its claim for refund for another tax year was timely filed because the copy of the Form 843 allegedly sent to the IRS was unsigned and undated and the IRS had no record of receiving the claim. Assuming that the claim was received by the IRS, it was barred by the limitations period in Code Sec. 6511(a).

Zero Products, Inc., DC Tex., 2008-2 USTC ¶50,484

Other References:

 
Code Sec. 6511

  CCH Reference - 2008FED ¶39,080.2455

 
Code Sec. 7422

  CCH Reference - 2008FED ¶41,688.504

  Tax Research Consultant

  CCH Reference - TRC IRS: 36,052.05
CCH Reference -
TRC LITIG: 9,056
 

CCH (cch.taxgroup.com) reports:

  The IRS has updated guidance on the Employee Plans Compliance Resolutions System (EPCRS), a voluntary correction program for failures and errors in employee retirement plans. EPCRS allows plan sponsors and plan professionals to correct certain plan errors and, thus, retain the tax benefits granted to qualified plans, Code Sec. 403(b) plans, simplified employee pensions (SEPs) and savings incentive match plan for employees (SIMPLE) IRAs. There are three levels of correction programs:

  (1) The Self-Correction Program (SCP) permits a plan sponsor to correct insignificant operational failures in plans without having to notify the IRS and without paying any fee or sanction.

  (2) The Voluntary Correction Program (VCP) allows a plan sponsor, at any time before an audit, to pay a limited fee and receive IRS approval for a correction of a plan.

  (3) The Audit Closing Agreement Program (Audit CAP) allows a sponsor to correct a failure or an error that has been identified on audit and pay a sanction based on the nature, extent and severity of the failure.

  The new guidance makes the following improvements in the existing EPCRS procedures:

  (1) The SCP is expanded to situations in which operational mistakes have been partially corrected when the plan comes under examination, and new examples include employees from Code Sec. 401(k) plans.

  (2) New VCP application procedures apply to SEPS, SARSEPS and SIMPLE IRAs, and existing application procedures are streamlined for several issues, including failure to amend plans for law changes, loan problems, failure to make minimum distributions to participants, excess elective deferrals made by participants to Code Sec. 401(k) plans and plans established by ineligible employers. The new guidance also makes it easier to use VCP to correct loan failures.

  (3) The guidance clarifies that, in particular cases, the IRS may decline to make EPCRS available in the interest of sound tax administration.

  The IRS expects to issue updated guidance to make further improvements to EPCRS and invites comments on how to improve the program. The IRS is particularly interested in comments regarding automatic enrollment in Code Sec. 401(k) plans, designated contributions to Roth IRAs, and efforts to make EPCRS more available to small employers.

  The new guidance is generally effective January 1, 2009, but plan sponsors may apply it on or after September 2, 2008. Rev. Proc. 2006-27, I.R.B. 2006-22, 945, and Section 3 of Rev. Proc. 2007-49, I.R.B. 2007-30, 141, are modified and superseded.

IR-2008-96,
2008FED ¶46,540

Rev. Proc. 2008-50, 2008FED ¶46,541

Other References:

 
Code Sec. 401

  CCH Reference - 2008FED ¶17,507.042

  CCH Reference - 2008FED ¶17,507.043

  CCH Reference - 2008FED ¶17,507.0432

  CCH Reference - 2008FED ¶17,507.0434

  CCH Reference - 2008FED ¶17,507.0437

  CCH Reference - 2008FED ¶17,507.2531

  CCH Reference - 2008FED ¶17,507.331

  CCH Reference - 2008FED ¶17,929.025

  CCH Reference - 2008FED ¶17,929.65

 
Code Sec. 403

  CCH Reference - 2008FED ¶18,282.11

  CCH Reference - 2008FED ¶18,282.41

 
Code Sec. 410

  CCH Reference - 2008FED ¶18,997.25

 
Code Sec. 411

  CCH Reference - 2008FED ¶19,076.954

 
Code Sec. 412

  CCH Reference - 2008FED ¶19,125.60

 
Code Sec. 415

  CCH Reference - 2008FED ¶19,218.0355

 
Code Sec. 501

  CCH Reference - 2008FED ¶22,604.10

 
Code Sec. 509

  CCH Reference - 2008FED ¶22,812.50

 
Code Sec. 521

  CCH Reference - 2008FED ¶22,882.196

 
Code Sec. 7121

  CCH Reference - 2008FED ¶41,090.10

 
Statement of Procedural Rules Sec. 601.201

  CCH Reference - 2008FED ¶43,360.2112

  CCH Reference - 2008FED ¶43,360.2113

  CCH Reference - 2008FED ¶43,360.2116

  CCH Reference - 2008FED ¶43,360.212

  Tax Research Consultant

  CCH Reference - TRC RETIRE: 51,450

Tax Analysts report: