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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