Internal Revenue Service Alerts (IRS)
Requirement to Notify IRS of Changes to Responsible Party
Beginning January 1, 2014, any entity with an EIN (Employer Identification Number) must file Form 8822-B to report the latest change to its responsible party. The “responsible party” is the person who has a level of control over the funds or assets in the entity that, as a practical matter, enables the individual, directly or […]
IRS Modifies Use-It-Or-Lose-It Rule For Employee Medical Flexible Spending Accounts
On Thursday, October 31, 2013, the Internal Revenue Service issued Notice 2013-71, relaxing the longstanding “use-it-or-lose-it” rule for employee medical flexible spending accounts (“FSAs”). In addition, for the first time the Notice allows employees to carry forward up to $500 of unused salary reduction amounts to a subsequent cafeteria plan year. The carryover option is […]
Watch out for letters from the IRS if you have a 457(b) plan
The IRS plans to send letters out over the next year to seek compliance information about 457(b) plans sponsored by nonprofits. Nonresponse to these letters may be inviting an audit by the IRS. 457(b) plans are often referred to as “top hats” due to the fact that they may only be offered to high-wage earners, […]
Breaking News: IRS releases ruling in regard to DOMA
The IRS today issued Revenue Ruling 2013-17 in response to the US Supreme Court’s ruling invalidating the Defense Of Marriage Act. The ruling’s key provision is to affirm that a same sex couple will be considered “married” for US tax purposes as long as they were married in a state where same sex marriage is […]
IRS scrutiny of unreasonable salaries likely to continue
If your company is structured as an S corporation, you more than likely considered the tax advantages of this entity choice. But, as is the way of the world, tax advantages also give rise to IRS scrutiny. And the agency has made clear that its interest in S corporations will continue. Why the audits? The […]
Do you have a Pension Plan? If so, you may need to file an IRS Form 8955-SSA
If you file a Form 5500, you should be aware of the following regulations Separated participants with deferred vested benefits are required to be reported on Form 8955-SSA The IRS filing is due 7 months after the plan year-end. For example, if you have a 12/31/11 year end, it will be due by 7/31/12 Should […]
Late Filing Notices from the IRS
As most of you are aware, the IRS shutdown its website for filing Form 990 electronically from January 1, 2012 through March 1, 2012. If your 990 was due to be electronically filed during this period, they asked that you not file your return until March 1, 2012 when the website was back up and […]
IRS Alert: Certain Form 1099 Reporting Rules Have Changed for 2011
In a continuing effort to make income reporting transparent, the IRS is adding Form 1099 questions on all tax returns (including Schedule C, E, and F of form 1040.) Even though this requirement also applies to non-compensatory income such as interest, dividends, royalties, and certain real estate transactions it is most relevant to non-employee/ independent […]
IRS Shuts Down 990 Electronic Filing System
The IRS has shut down its 990 electronic filing system for upgrades. As a result, if you have a 990 that is due between now and March 1, 2012, your return will not be able to be filed until March 1 when the IRS is scheduled to bring its system back online. Because of this […]