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IRS to Shut Down

For a Few Days; This and More News from the IRS

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The IRS's e-File and e-Services will be shut down during the Columbus Day holiday from Sunday, October 11, 2009 at 9:00 p.m. Eastern Time through Tuesday, October 13, 2009 at 5:00 a.m. Eastern Time. The shutdown is required so that the IRS can perform critical operations and maintenance programs. Unfortunately the shutdown comes right before the big October 15 deadline for extended individual returns. An unannounced shutdown at the same time last year provoked practitioner complaints and the IRS promised to consider practitioner interests in timing the 2009 shutdown. However, the IRS says that it was unable to find a reasonable alternative time for the shutdown [IMRS 09-0000928].

IRS Tweets, Podcasts and More

The IRS doesn't have a Facebook page yet (perhaps out of fear that it won't attract any friends or concerns about what might be posted on its wall). Nonetheless, it has embraced social networking and other new media.

You can now follow the IRS on Twitter @internalrevenue, where the IRS tweets about news and upcoming events.

The IRS also has a YouTube channel (http://www.youtube.com/irsvideos), featuring videos produced by the IRS on various tax topics. The videos are available in English, Spanish, American Sign Language and other languages. And those of you who prefer audio can download podcasts from the IRS's iTunes site. If you don't have an iTunes account, you can hear the same podcasts, in English and Spanish, on the IRS Multimedia Center.

Tax Talk Today (http://www.taxtalktoday.com) site has hosted an ongoing series of live events just concluded; reruns of the programs can be viewed for up to 12 months. Shows feature industry tax professionals and top IRS representatives in discussions and answering e-mail questions from viewers. Reruns can also be downloaded as audio podcasts through the Tax Talk Today Web site or directly through iTunes. CPE for sale: Tax professionals, IRS enrolled agents, financial planners and payroll professionals in need of continuing education credits are eligible to receive one CPE credit by viewing or listening to a program and purchasing the CPE credit.

IRS Spreading the Word on New Tax Law

The IRS has announced the availability of a wide array of products promoting the tax benefits offered under the recently enacted American Recovery and Reinvestment Act of 2009 (ARRA). With time running out to qualify for some of ARRA's benefits, the IRS has unveiled new YouTube videos, radio public service announcements and multi-lingual informational flyers that provide basic information for taxpayers. The items are available on IRS.gov for partner groups, the media, web sites and other organizations whose audience could benefit from the new tax changes. The IRS.gov official web site contains links and complete information about ARRA at www.irs.gov/recovery.

Topics covered include:

• The first-time homebuyer credit is available to people who meet eligibility requirements and complete the purchase of their homes before December 1.
• The American Opportunity Credit expands education tax credits and a change in 529 plans allows for the purchase of computers for college use.
• The energy credit is increased to a maximum of $1,500 for certain energy-saving upgrades.
• A new deduction is created for the sales or excises taxes paid on the purchase price of new vehicles.

IRS Reviews Return Preparers

On a more serious note, the IRS is currently in the process of conducting a tax return preparer review aimed at developing new tax preparer performance standards. To date, the IRS has conducted forums to solicit comments from the public, government agencies, unenrolled preparers and the software industry.

Once the review process is completed, IRS Commissioner Doug Shulman says that by year-end he will propose a comprehensive set of recommendations to help the Internal Revenue Service better leverage the tax return preparer community with the twin goals of increasing taxpayer compliance and ensuring uniform and high ethical standards of conduct for tax preparers [IR-2009-57]. Potential recommendations could focus on a new model for the regulation of tax return preparers; service and outreach for return preparers; education and training of return preparers; and enforcement related to return preparer misconduct. "Tax return preparers help Americans with one of their biggest financial transactions each year. We must ensure that all preparers are ethical, provide good service and are qualified," Shulman said. "At the end the day, tax preparers and the associated industry must be part of our overall game plan to strengthen the integrity of the tax system."

We will keep you posted as the tax return preparer review progresses.

Terence M. Myers, J.D. and Dorinda D. DeScherer, J.D. are nationally renowned writers on tax topics for such publications as Accountants Tax Weekly, Tax Return Preparer's Letter, Nonprofit Tax and Financial Strategies, and Executive's Tax and Management Report. For many years Myers was Managing Editor and DeScherer Assistant Managing Editor for many Prentice Hall tax newsletters. Myers and DeScherer have published books and other publications with Harcourt Professional Publishing, Aspen Publishers, Prentice Hall, and the AICPA.

Last Updated: 10/07/2009