Archive for the ‘IRS Update’ Category

Treasury and IRS Announce That All Legal Same-Sex Marriages Will Be Recognized For Federal Tax Purposes; Ruling Provides Certainty, Benefits and Protections Under Federal Tax Law for Same-Sex Married Couples

IR-2013-72, Aug. 29, 2013

WASHINGTON — The U.S. Department of the Treasury and the Internal Revenue Service (IRS) today ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes. The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a jurisdiction that does not recognize same-sex marriage.
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IRS Simplifies Late S Corp Elections

The Internal Revenue Service has combined parts of several revenue procedures into a new revenue procedure that provides relief to companies that make late elections to become S corporations.

PRF Accounting and Tax Announces NEW website!

Come visit PRF Accounting and Tax completely redesigned website! October 15th is coming quickly, so if you need to get your 2012 taxes filed we can help!! Also we have provided tools to help you get organized to file 2013 Form 1040.

There is time to sign up for the “Individual Provisions of the Affordable Care Act” webinar scheduled for Tuesday, July 30th at 1PM EDT. Various dates in August have also been scheduled. Check out dates/times by clicking the link below.

You may be required to report the account to the Department of the Treasury.
Any United States person who has a financial interest in or signature authority over any financial account(s)located outside of the United States is required to electronically file a Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year. Report by 6/30/13. No extension of time to file is available and a penalty of up to $10,000 can be asserted for each failure to file.

To comply with this law:
• Answer FBAR-related questions on federal tax and information returns. For example: Check the block
on Form 1040 Schedule B, Part III.
• Complete electronic version of Form TD F 90-22.1.
• E-file the completed form using the FinCEN electronic filing system available at http://www.fincen.gov
• The FBAR must be e-filed by June 30 of the year following the calendar year being reported.

For assistance complying with the law:
Visit http://www.IRS.gov or http://www.fincen.gov to view the electronic version of the FBAR and related
information. For assistance with completing the FBAR, call 866-270-0733 (for callers within the
U.S.) or 313-234-6146 (for callers outside the U.S.). Questions regarding the FBAR can be sent to
FBARquestions@irs.gov

IR-2013-54, May 23, 2013
WASHINGTON — The Internal Revenue Service reminds U.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2012, that they may have a U.S. tax liability and a filing requirement in 2013.
The filing deadline is Monday, June 17, 2013, for U.S. citizens and resident aliens living overseas, or serving in the military outside the U.S. on the regular due date of their tax return. Eligible taxpayers get two additional days because the normal June 15 extended due date falls on Saturday this year. To use this automatic two-month extension, taxpayers must attach a statement to their return explaining which of these two situations applies. See U.S. Citizens and Resident Aliens Abroad for additional information additional information on extensions of time to file.
Nonresident aliens who received income from U.S. sources in 2012 also must determine whether they have a U.S. tax obligation. The filing deadline for nonresident aliens can be April 15 or June 17 depending on sources of income. See Taxation of Nonresident Aliens on IRS.gov.
Federal law requires U.S. citizens and resident aliens to report any worldwide income, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers need to fill out and attach Schedule B to their tax return. Certain taxpayers may also have to fill out and attach to their return Form 8938, Statement of Foreign Financial Assets.
Part III of Schedule B asks about the existence of foreign accounts, such as bank and securities accounts, and usually requires U.S. citizens to report the country in which each account is located.
Generally, U.S. citizens, resident aliens and certain nonresident aliens must report specified foreign financial assets on Form 8938 if the aggregate value of those assets exceeds certain thresholds. Instructions for Form 8938 explain the thresholds for reporting, what constitutes a specified foreign financial asset, how to determine the total value of relevant assets, what assets are exempted and what information must be provided.
Separately, taxpayers with foreign accounts whose aggregate value exceeded $10,000 at any time during 2012 must file Treasury Department Form TD F 90-22.1. This is not a tax form and is due to the Treasury Department by June 30, 2013. For details, see Publication 4261, Do You Have a Foreign Financial Account? Though this form can be filed on paper, Treasury encourages taxpayers to file it electronically.
Taxpayers abroad can now use IRS Free File to prepare and electronically file their returns for free. This means both U.S. citizens and resident aliens living abroad with adjusted gross incomes (AGI) of $57,000 or less can use brand-name software to prepare their returns and then e-file them for free.
Taxpayers with an AGI greater than $57,000 who don’t qualify for Free File can still choose the accuracy, speed and convenience of electronic filing. Check out the e-file link on IRS.gov for details on using the Free File Fillable Forms or e-file by purchasing commercial software.
A limited number of companies provide software that can accommodate foreign addresses. To determine which will work best, get help choosing a software provider. Both e-file and Free File are available until Oct. 15, 2013, for anyone filing a 2012 return.
Any U.S. taxpayer here or abroad with tax questions can use the online IRS Tax Map to get answers. An International Tax Topic Index page was added recently. The IRS Tax Map assembles or groups IRS forms, publications and web pages by subject and provides users with a single entry point to find tax information.

IR-2013-52, May 20, 2013

WASHINGTON — The Internal Revenue Service today provided updated statistics showing continued growth in electronic filing of tax returns. So far in 2013, more than 43 million people have self-prepared and e-filed their tax returns from home, an increase of more than 4 percent compared to the prior year.

Through May 10, the IRS received more than 43.6 million self-prepared e-file returns, up from 41.7 million a year earlier. E-filed returns from tax professionals increased slightly, reaching almost 70.4 million. In all, almost 114 million tax returns came in through e-file this year, up from 112.1 million at this point last year.

Other highlights from the new filing season statistics show:

  • During 2013, the IRS issued more than 101 million refunds worth almost $268 billion.
  • Almost 80 percent of refunds used direct deposit.
  • More people are using IRS.gov to get answers, file their returns and resolve issues. So far in 2013, the IRS web site has been accessed more than 300 million times, up almost 25 percent compared to the same time last year.

 

2013 FILING SEASON STATISTICS

Cumulative statistics comparing 5/11/12 and 5/10/13

Individual Income Tax Returns:

2012

2013

% Change

Total Receipts

135,473,000

134,349,000

-0.8

Total Processed

130,261,000

129,674,000

-0.5

 

 

 

 

E-filing Receipts:

 

 

 

TOTAL           

 112,089,000

113,954,000

1.7

Tax Professionals

70,344,000

70,380,000

0.1

Self-prepared

41,745,000

43,574,000

4.4

 

 

 

 

Web Usage:

 

 

 

Visits to IRS.gov

255,269,615

318,408,842

24.7

 

 

 

 

Total Refunds:

 

 

 

Number

102,522,000

101,082,000

-1.4

Amount

$277.180

Billion

$267.946

Billion

-3.3

Average refund

 $2,704

$2,651

-2.0

 

 

 

 

Direct Deposit Refunds:

 

 

 

Number

 79,308,000

79,880,000

 0.7

Amount

$231.656

Billion

$228.467

Billion

-1.4

Average refund

 $2,921

$2,860

-2.1

IRS Warns Tax-Exempt Groups to File by May 15 or Lose Status