Inside This Issue
Do You Know the Latest Tax Law Changes?
Learn about Small Business Tax Incentives in Economically Distressed Areas in IRS/HUD Teleconference on Mar 15
Employers with Employees in a Combat Zone Have Additional Tax Responsibilities
Restaurant and Beverage Industry ATIP Deadline Extended Six Months until June 30
SB/SE Customer Base Survey Began March 1
IRS Issues Revised Foreign Housing Exclusion Limits for U.S. Citizens and Resident Aliens Working Overseas
Recent IRS Announcements for Small Businesses
1. Do You Know the Latest Tax Law Changes?
IRS.gov has the latest changes (new law and soon to be effective provisions from prior tax law) for small businesses, the self-employed and corporations.
The IRS’ 2007 Tax Hints is also a useful resource to guide you through the tax filing season.
2. Learn about Small Business Tax Incentives in Economically Distressed Areas in IRS/HUD Teleconference on Mar 15
Under the Community Renewal Act of 2000, the IRS and the Department of Housing and Urban Development (HUD) are partnering to educate small businesses about special tax incentives available in economically distressed areas which promote economic development, help businesses open and expand and stimulate job growth.
On March 15 at 2:00 pm EST the IRS and HUD are participating in a teleconference that offers the opportunity for tax preparers and small businesses to learn more about small business tax incentives in certain economically distressed areas. Register with HUD by e-mail.
IRS Publication 954, Tax Incentives for Distressed Communities, provides information about the tax incentives for businesses located in designated Empowerment Zones and/or Renewal Communities.
HUD Publication, Spotlight on Results: Capturing Successes in Renewal Communities and Empowerment Zones, highlights the program’s tax incentives and successes.
3. Employers with Employees in a Combat Zone Have Additional Tax Responsibilities
When you have employee(s) serving in a combat zone, you may be confronted with various tax issues including: the treatment of their wages, differential pay, Social Security taxes, health care coverage, group term life insurance, and vacation pay.
IRS’ FAQs discuss these issues.
Related links:Publication 15,
Employer’s Tax Guide Publication 3,
Armed Forces Guide Back to Top
4. Restaurant and Beverage Industry ATIP Deadline Extended Six Months until June 30
Businesses in the food and beverage industry now have until June 30 to elect to participate in the Attributed Tip Income Program (ATIP).
In July 2006, IRS introduced ATIP, a three-year pilot program with simple enrollment requirements, for food and beverage employers to reduce recordkeeping burdens, and promote tax law compliance regarding tip income.
Two significant benefits ATIP offers for both participating employers and employees are reduced record keeping burdens and safe harbor protections from tip audits.
Related Link:IR-2007-44: IRS Extends Attributed Tip Income Program Deadline to June 30
5. SB/SE Customer Base Survey Began March 1
An IRS Small Business/Self-Employed Customer Base Survey began March 1. A randomly selected sample of SB/SE individual and business taxpayers will be contacted by Pacific Market Research.
Prior to the actual phone call, taxpayers selected will receive two separate letters: one from SB/SE Commissioner Kathy Petronchak inviting their participation and a second letter directly from PMR.
If you are contacted:
The survey is strictly voluntary and all responses will remain anonymous in keeping with the IRS’ privacy policy
PMR will not ask for SSNs, EINs, or any personal financial information
Survey takes approximately 15 – 20 minutes to complete.
6. IRS Issues Revised Foreign Housing Exclusion Limits for U.S. Citizens and Resident Aliens Working Overseas
The IRS recently issued adjustments to the limitation on housing expenses for U.S. citizens and resident aliens working overseas. The foreign housing cost limits, revised for specific locations on the basis of geographic differences in housing costs compared to U.S. housing costs, are included in Notice 2007-25.
The complete Limit on Housing Expenses table is included on page 5 of the updated version of the 2006 Instructions for Form 2555.
7. Recent IRS Announcements for Small Businesses
IR-2007-42, IRS Offers Tips for Accurate Schedule K-1 Reporting
FS-2007-15, Foreign Financial Accounts Reporting Requirements
IR-2007-45, Farmers, Fishermen Affected by Storms Can Seek Penalty Relief
10 Million Taxpayers Miss Out on Telephone Tax Refunds; IRS Urges People to Check before Filing
Updated Tax Year 2006 Directions for Corporations Required to e-file (rev. 02-26-2007)
