Tax News

CCH (cch.taxgroup.com) reports:

  Although New Jersey requires that gross (personal) income tax be imposed at the highest rate on a composite return (NJ-1080C) filed by pass-through entities on behalf of their nonresident owners, the Division of Taxation is allowing the use of two rates in order to encourage nonresident individuals to elect to participate in a composite return. As a result of Ch. 69 (A.B. 4102), Laws 2009, which increased the personal income tax rate on high-income taxpayers, 2009 composite return filers may continue to apply the 6.37% rate for participating individuals with New Jersey sourced income of less than $250,000 each. However, the new highest rate of 10.75% is applied to participants with New Jersey sourced income of $250,000 or more.

   
 
Notice , New Jersey Division of Taxation, August 4, 2009   

CCH (cch.taxgroup.com) reports:

  A taxpayer's request for an installment agreement was remanded to the IRS Appeals Officer to permit a taxpayer to pursue the agreement where the administrative record was hopelessly muddled and the IRS settlement officer handling the case was unavailable for a scheduled telephone conference. The officer abused her discretion where the notice of determination she issued inaccurately stated that the taxpayers had failed to provide sufficient documentation. Moreover, the attachment to the notice stated that the taxpayer had failed to provide any documentation and that the taxpayers "did not present any acceptable alternatives or provide a financial statement." All of these grounds were contradicted by the factual record.

  Furthermore, the settlement officer did not make herself available for a scheduled telephone conference, which was never rescheduled, and was generally not available when the petitioners tried to contact her. In addition, the administrative record in the case was confused and contained so many errors and inconsistencies as to lack a sound basis in fact or law. The settlement officer failed to make any actual determination as to whether the petitioners would qualify for an installment agreement.

S. Meeh, TC Memo. 2009-180, Dec. 57,899(M)

Other References:

 
Code Sec. 6330

  CCH Reference - 2009FED ¶38,184.60

  Tax Research Consultant

  CCH Reference - TRC IRS: 42,120
CCH Reference - TRC IRS: 51,056.25

CCH (cch.taxgroup.com) reports:

  As part of its 2009 Summertime Tax Tips series, the IRS has provided summary sheets for taxpayers with important information on avoiding identity theft, determining if it is necessary to amend a return and obtaining tax refunds that are currently unclaimed or undeliverable.

  In 2009 IRS Summertime Tax Tip 2009-11, the IRS provides a list of some of the ways that a taxpayer's identity could be stolen and the repercussions this could have for the individual's tax records. The IRS points out that it does not initiate contact with a taxpayer by email and cautions that if a taxpayer receives such an email, the taxpayer should report this to the IRS and forward the scam email to hishing@irs.gov.">phishing@irs.gov. Additional information is available on the IRS's Identity Theft Resource Page, and further assistance for those who have been victimized is available from the IRS Identity Protection Specialized Unit at (800) 908-4490.

  When is it necessary to amend your tax return? 2009 IRS Summertime Tax Tip 2009-12 explains that amendment is generally not necessary for math errors or missing forms because the IRS corrects such errors and requests missing forms when it processes an original return. However, filing an amended return is necessary if filing status, dependents, total income or deductions and credits were incorrectly reported. The guidance also cites instances when a taxpayer may elect to file an amended return, such as when a taxpayer is eligible to claim a credit and didn't do so on the original return. The procedure for filing Form 1040X and the applicable time frame are also briefly summarized; additional assistance is available at www.IRS.gov or by calling 800-TAX-FORM (800-829-3676).

  In 2009 IRS Summertime Tax Tip 2009-13, the IRS outlines the procedures for collecting unclaimed refunds and undeliverable refunds. If an individual was not required to file a tax return but had taxes withheld from wages or is eligible for the refundable Earned Income Tax credit (EITC), that individual may obtain a refund by filing a return to claim the refund within three years. Additional guidance about this and the EITC is available at www.IRS.gov. If a taxpayer filed a return and expected a refund check but never received it, the refund may have been returned to the IRS as undeliverable. Procedures for claiming an undeliverable refund and ensuring that the IRS has the taxpayer's current correct address are summarized in the information sheet.

2009 IRS Summertime Tax Tip 2009-11

2009 IRS Summertime Tax Tip 2009-12

2009 IRS Summertime Tax Tip 2009-13
 

Tax Analysts report: