GENERAL NEWS AFFECTING TAX REPORTING
Rev. Rul. 2009-39, explaining procedures for interest-free adjustments of federal
income tax withholding and FICA
GAO report and recommendations on worker misclassification, GAO-09-717
(September 9, 2009)
H.R. 3408 Bill introduced in Congress that includes changes in worker
classification/Section 530 relief, the corporate exception from being reported on Forms
1099, and the amounts assessed as TIN penalties for Form 1099 errors (August 12,
2008)
Tax Exempt and Government Entities - Advisory Committee Report. Four sets of
recommendations, affecting (1) international grantmaking; (2) international pension
issues; (3) record retention for tax-exempt bonds and tax credit bonds; (4) federal, state
and local government compliance. (June 10, 2009)
Notice 2009-48, Q&A guidance on employer-owned life insurance (May 29, 2009)
TD 9450, final regulations for Form 1099-S reporting of lump-sum payments for
standing timber (May 28, 2009)
Additional Tax Proposals in the President's fiscal 2010 budget proposal that involve
Insurance, IRAs, recipients of Rental Income, Tax Rates, HR and Payroll, and other
issues.
Notice 2009-62 FBAR filing extension for certain persons with signature authority over
foreign bank accounts (August 7,. 2009)
PLR 200930029 Equipment and tool reimbursement plan (released July 24, 2009)
REG-152166-05 Proposed regulations for Taxpayer Assistance Orders issued to the
IRS by the National Taxpayer Advocate (July 27, 2009)
National Taxpayer Advocate Report to Congress - Fiscal Year 2010 Objectives
(June 30, 2009)
Notice 2009-27 Guidance on the COBRA premium reduction program created by the
ARRA economic recovery act. Covers 58 issues, in Q&A format. (March 2009)
IRPAC recommendation: TIN documentation for acquired accounts
IRPAC recommendation: LLC classification on Form W-9
ETAAC Annual Report to Congress Recommendations concerning e-filing programs,
from the IRS Electronic Tax Administration Advisory Committee. (June 26, 2009)
Notice 2009-46, IRS asks for comments on several ways of simplifying the substantiation
of employees' business use of employer-provided cell phones. Currently, detailed
usage logs are required, and without them the fair market value of the cell phone usage
is includible in the employee's gross income. (June 5, 2009)
Accounts Payable tax proposal Summary: Tax reporting, withholding, and penalty
changes, proposed as part of the President's fiscal 2010 federal budget proposal, that
would particularly affect payments made from AP.
GAO-09-238 Report of Government Accountability Office on the tax gap and Form 1099-
MISC reporting (Jan 2009)
New Section 6050W of Internal Revenue Code - reporting by payment card settlement
organizations and third-party network transaction settlement organizations
REG-148326-05 Proposed regulations for calculating amounts includible in current
income under Sec. 409A and the additional taxes imposed
Notice 2008-115 2008 Reporting and withholding under I.R.C. Sec. 409A for deferred
compensation under a nonqualified deferred compensation plan - including relief for box
15a 1099-MISC reporting and box 12 code Y W-2 reporting (Dec 2008)
Notice 2008-113 Correction of failures of a Nonqualified Deferred Compensation Plan to
comply with IRC Sec. 409A (Dec 2008)
Rev. Proc. 2009-21 Changes in amounts of certain tax benefits and tax credits
according to late 2008 and early 2009 tax legislation
REG-158747-06 Proposed regulations for mandatory 3% tax withholding and Form
1099 reporting by federal, state and local governments on payments for services and
property (except for real property) (Dec 2008)
COURT CASES
Benz v Commissioner (Premature IRA distribution for higher education expenses was
rule not to be a modification of earlier election to receive distributions as series of
substantially equal period payments)
T.C. Summary Opinion 2009-48 (NRA employee in grant-funded research program was
not individually a grant recipient) (March 2009)
Tax Court Memorandum 2009-48 (Backup withholding) (March 2009)
Hopkins v Cornerstone America (Worker classification) (Jan 2009)
NON-U.S. PERSONS
IRS Pub 515 - for use in 2009, issued April 8 - the basic IRS explanation of
requirements for withholding tax from payments to nonresident aliens and foreign entities
Notice 2009-91, notification that effective January 1, 2010, for nonresident alien
employees working in the U.S. there will be two special calculations necessary to
determine federal income tax withholding (November 13, 2009)
Form 8233 - new version, released April 10, of the form used by nonresident alien
individuals for claiming a tax treaty exception from withholding on compensation for
services. New wording clarifies that the 8233 is the form to use for these individual
claims, both in treaties where the benefit is under an "independent personal services"
article and in treaties where the benefit is under a "business profits" article.
Form W-7 - new version March 2009 of the application for an IRS ITIN (Individual
Taxpayer Identification Number) for non-U.S. persons. See changes in the instructions
for NRA student, professor or researcher; and for NRA claiming Exception #1 on
third-party withholding on passive income such as interest, annuity, partnership income.
Announcement 2009-5 Supplemental tables of income tax rates under new income tax
treaties or protocols with Bulgaria, Canada and Iceland (supplement to the tables in IRS
Publications 515 and 901) (Feb 2009)
Tax Treaties between the U.S. and other countries
1042 Compliance Examination sections from Internal Revenue Manual (nonresident
alien payments tax compliance)
RETIREMENT PLANS AND ACCOUNTS
Notice 2009-82, relief for individuals to roll over Required Minimum Distributions
received in 2009, and relief for plan sponsors on amending plans to conform to the
2009 RMD waiver (September 24, 2009)
Notice 2009-75, eligible rollovers from 401(k), 403(b) and 457(b) qualified plans to Roth
IRAs, determination of amount included in gross income, and income limitations that
prohibit rollover to a Roth (September 14, 2009)
Group of IRS guidance documents on retirement plans and accounts: Notice 2009-65,
automatic enrollment and contributions in retirement plan. Rev. Rul. 2009-30, automatic
increases in contributions. Notice 2009-66, automatic enrollment in SIMPLE IRA. Notice
2009-67, SIMPLE IRA plan amendment for automatic enrollment. Rev. Rul. 2009-31,
paid time off converted to plan contributions. Rev. Rul. 2009-32, unused paid time off
at termination of employment converted to plan contribution. Notice 2009-68, new
rollover explanations, safe harbor to furnish to plan participants. (September 5, 2009)
Notice 1036-P Optional additional withholding for pension payments in 2009 --
calculations that may be used in conjunction with the withholding tables issued in
February 2009 Pub 15-T. (issued May 14, 2009)
LTR 200928043 on an IRA distribution to a surviving spouse
TD 9447 Final Regulations for automatic contribution plans (automatic enrollment
retirement plans) (Feb 2009)
Notice 2009-9 Guidance on reporting and notifying participants of Required Minimum
Distribution suspension for 2009 (Jan 2009)
Required Minimum Distribution suspension for 2009 -- provision of the Worker, Retiree
and Employer Recovery Act of 2008 (Dec 2008)
SECURITIES AND BANKING
Notice 2009-61 Fails charges on Treasury securities trades (July 30, 2009)
Mutual funds: Proposed FinCEN regulation to define mutual funds as financial
institutions for Bank Secrecy Act reporting of Currency Transaction Reports (CTRs), in
place of filing Forms 8300 for receipt of more than $10,000 in currency; and
recordkeeping for transmittals of funds of $3,000 or more (the "travel rule"). (June 5,
2009)
TD 9449 provides new regulations for allocation and reporting of mortgage insurance
premiums. Mortgage servicers are required to report the total amount of mortgage
insurance premiums of $600 or more during a calendar year, including prepayments,
received from an individual taxpayer. (effective May 7, 2009)
Text of Cost Basis Reporting Legislation in Emergency Economic Stabilization Act
signed by the President October 3 2008
Qualified and Nonqualified Intermediary changes, new withholding and information
reporting requirements, and other provisions affecting International taxation, proposed
as part of the President's fiscal 2010 budget proposal.
Rev. Rul. 2009-13 provides guidance for policyholders who surrender or sell a life
insurance contract. Rev. Rul. 2009-14 provides guidance for investors that purchase a
life insurance contract. (May 2009)
REG-143686-07 Proposed regulations on stock basis in dividend equivalent transaction
(Jan 2009)
Notice 2009-11 -- Composite Form 1099 broker statements that can be furnished by the
February 17, 2009 deadline (Jan 2009)
Notice 2009-4 Determination of basis in property acquired in a B reorganization or other
transferred basis transaction (Dec 2008)
TD 9435 Temporary regulations on distributions of stock of controlled corporations
under Sec. 355(a)(3)(B) (Dec 2008)
TD 9430 Limiting the 36-Month Reporting Rule for Discharge of Indebtedness effective
November 10, 2008
Rev. Rul. 2009-39, explaining procedures for interest-free adjustments of federal
income tax withholding and FICA
GAO report and recommendations on worker misclassification, GAO-09-717
(September 9, 2009)
H.R. 3408 Bill introduced in Congress that includes changes in worker
classification/Section 530 relief, the corporate exception from being reported on Forms
1099, and the amounts assessed as TIN penalties for Form 1099 errors (August 12,
2008)
Tax Exempt and Government Entities - Advisory Committee Report. Four sets of
recommendations, affecting (1) international grantmaking; (2) international pension
issues; (3) record retention for tax-exempt bonds and tax credit bonds; (4) federal, state
and local government compliance. (June 10, 2009)
Notice 2009-48, Q&A guidance on employer-owned life insurance (May 29, 2009)
TD 9450, final regulations for Form 1099-S reporting of lump-sum payments for
standing timber (May 28, 2009)
Additional Tax Proposals in the President's fiscal 2010 budget proposal that involve
Insurance, IRAs, recipients of Rental Income, Tax Rates, HR and Payroll, and other
issues.
Notice 2009-62 FBAR filing extension for certain persons with signature authority over
foreign bank accounts (August 7,. 2009)
PLR 200930029 Equipment and tool reimbursement plan (released July 24, 2009)
REG-152166-05 Proposed regulations for Taxpayer Assistance Orders issued to the
IRS by the National Taxpayer Advocate (July 27, 2009)
National Taxpayer Advocate Report to Congress - Fiscal Year 2010 Objectives
(June 30, 2009)
Notice 2009-27 Guidance on the COBRA premium reduction program created by the
ARRA economic recovery act. Covers 58 issues, in Q&A format. (March 2009)
IRPAC recommendation: TIN documentation for acquired accounts
IRPAC recommendation: LLC classification on Form W-9
ETAAC Annual Report to Congress Recommendations concerning e-filing programs,
from the IRS Electronic Tax Administration Advisory Committee. (June 26, 2009)
Notice 2009-46, IRS asks for comments on several ways of simplifying the substantiation
of employees' business use of employer-provided cell phones. Currently, detailed
usage logs are required, and without them the fair market value of the cell phone usage
is includible in the employee's gross income. (June 5, 2009)
Accounts Payable tax proposal Summary: Tax reporting, withholding, and penalty
changes, proposed as part of the President's fiscal 2010 federal budget proposal, that
would particularly affect payments made from AP.
GAO-09-238 Report of Government Accountability Office on the tax gap and Form 1099-
MISC reporting (Jan 2009)
New Section 6050W of Internal Revenue Code - reporting by payment card settlement
organizations and third-party network transaction settlement organizations
REG-148326-05 Proposed regulations for calculating amounts includible in current
income under Sec. 409A and the additional taxes imposed
Notice 2008-115 2008 Reporting and withholding under I.R.C. Sec. 409A for deferred
compensation under a nonqualified deferred compensation plan - including relief for box
15a 1099-MISC reporting and box 12 code Y W-2 reporting (Dec 2008)
Notice 2008-113 Correction of failures of a Nonqualified Deferred Compensation Plan to
comply with IRC Sec. 409A (Dec 2008)
Rev. Proc. 2009-21 Changes in amounts of certain tax benefits and tax credits
according to late 2008 and early 2009 tax legislation
REG-158747-06 Proposed regulations for mandatory 3% tax withholding and Form
1099 reporting by federal, state and local governments on payments for services and
property (except for real property) (Dec 2008)
COURT CASES
Benz v Commissioner (Premature IRA distribution for higher education expenses was
rule not to be a modification of earlier election to receive distributions as series of
substantially equal period payments)
T.C. Summary Opinion 2009-48 (NRA employee in grant-funded research program was
not individually a grant recipient) (March 2009)
Tax Court Memorandum 2009-48 (Backup withholding) (March 2009)
Hopkins v Cornerstone America (Worker classification) (Jan 2009)
NON-U.S. PERSONS
IRS Pub 515 - for use in 2009, issued April 8 - the basic IRS explanation of
requirements for withholding tax from payments to nonresident aliens and foreign entities
Notice 2009-91, notification that effective January 1, 2010, for nonresident alien
employees working in the U.S. there will be two special calculations necessary to
determine federal income tax withholding (November 13, 2009)
Form 8233 - new version, released April 10, of the form used by nonresident alien
individuals for claiming a tax treaty exception from withholding on compensation for
services. New wording clarifies that the 8233 is the form to use for these individual
claims, both in treaties where the benefit is under an "independent personal services"
article and in treaties where the benefit is under a "business profits" article.
Form W-7 - new version March 2009 of the application for an IRS ITIN (Individual
Taxpayer Identification Number) for non-U.S. persons. See changes in the instructions
for NRA student, professor or researcher; and for NRA claiming Exception #1 on
third-party withholding on passive income such as interest, annuity, partnership income.
Announcement 2009-5 Supplemental tables of income tax rates under new income tax
treaties or protocols with Bulgaria, Canada and Iceland (supplement to the tables in IRS
Publications 515 and 901) (Feb 2009)
Tax Treaties between the U.S. and other countries
1042 Compliance Examination sections from Internal Revenue Manual (nonresident
alien payments tax compliance)
RETIREMENT PLANS AND ACCOUNTS
Notice 2009-82, relief for individuals to roll over Required Minimum Distributions
received in 2009, and relief for plan sponsors on amending plans to conform to the
2009 RMD waiver (September 24, 2009)
Notice 2009-75, eligible rollovers from 401(k), 403(b) and 457(b) qualified plans to Roth
IRAs, determination of amount included in gross income, and income limitations that
prohibit rollover to a Roth (September 14, 2009)
Group of IRS guidance documents on retirement plans and accounts: Notice 2009-65,
automatic enrollment and contributions in retirement plan. Rev. Rul. 2009-30, automatic
increases in contributions. Notice 2009-66, automatic enrollment in SIMPLE IRA. Notice
2009-67, SIMPLE IRA plan amendment for automatic enrollment. Rev. Rul. 2009-31,
paid time off converted to plan contributions. Rev. Rul. 2009-32, unused paid time off
at termination of employment converted to plan contribution. Notice 2009-68, new
rollover explanations, safe harbor to furnish to plan participants. (September 5, 2009)
Notice 1036-P Optional additional withholding for pension payments in 2009 --
calculations that may be used in conjunction with the withholding tables issued in
February 2009 Pub 15-T. (issued May 14, 2009)
LTR 200928043 on an IRA distribution to a surviving spouse
TD 9447 Final Regulations for automatic contribution plans (automatic enrollment
retirement plans) (Feb 2009)
Notice 2009-9 Guidance on reporting and notifying participants of Required Minimum
Distribution suspension for 2009 (Jan 2009)
Required Minimum Distribution suspension for 2009 -- provision of the Worker, Retiree
and Employer Recovery Act of 2008 (Dec 2008)
SECURITIES AND BANKING
Notice 2009-61 Fails charges on Treasury securities trades (July 30, 2009)
Mutual funds: Proposed FinCEN regulation to define mutual funds as financial
institutions for Bank Secrecy Act reporting of Currency Transaction Reports (CTRs), in
place of filing Forms 8300 for receipt of more than $10,000 in currency; and
recordkeeping for transmittals of funds of $3,000 or more (the "travel rule"). (June 5,
2009)
TD 9449 provides new regulations for allocation and reporting of mortgage insurance
premiums. Mortgage servicers are required to report the total amount of mortgage
insurance premiums of $600 or more during a calendar year, including prepayments,
received from an individual taxpayer. (effective May 7, 2009)
Text of Cost Basis Reporting Legislation in Emergency Economic Stabilization Act
signed by the President October 3 2008
Qualified and Nonqualified Intermediary changes, new withholding and information
reporting requirements, and other provisions affecting International taxation, proposed
as part of the President's fiscal 2010 budget proposal.
Rev. Rul. 2009-13 provides guidance for policyholders who surrender or sell a life
insurance contract. Rev. Rul. 2009-14 provides guidance for investors that purchase a
life insurance contract. (May 2009)
REG-143686-07 Proposed regulations on stock basis in dividend equivalent transaction
(Jan 2009)
Notice 2009-11 -- Composite Form 1099 broker statements that can be furnished by the
February 17, 2009 deadline (Jan 2009)
Notice 2009-4 Determination of basis in property acquired in a B reorganization or other
transferred basis transaction (Dec 2008)
TD 9435 Temporary regulations on distributions of stock of controlled corporations
under Sec. 355(a)(3)(B) (Dec 2008)
TD 9430 Limiting the 36-Month Reporting Rule for Discharge of Indebtedness effective
November 10, 2008
COKALA Tax Information
Reporting Solutions, LLC
Reporting Solutions, LLC
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News Archive, 2009
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