Equal Employment Opportunity Commission Recognizes IRS Efforts to Employ Blind, Visually Impaired
WASHINGTON — The Equal Employment Opportunity Commission (EEOC) today recognized IRS Acting Commissioner Linda Stiff for the agency’s ongoing partnership with Lions World Services for the Blind and its efforts to employ persons with visual impairments.
Through the partnership, the IRS and Lions World Services for the Blind train blind and visually impaired candidates for positions within the IRS. Training includes the use of adaptive technologies and presentation of tax materials in alternative media.
“The IRS is committed to enhancing the spirit of diversity, inclusion and equal opportunity for all of its employees,” said Richard Morgante, Commissioner of the IRS Wage & Investment Division, who accepted the EEOC Freedom to Compete Award on behalf of Stiff.
Each year the EEOC presents the Freedom to Compete Award in recognition of employers who have established programs designed to increase access to employment.
"In today's competitive global economy, employers must cast a wide net to attract the most diverse range of talent available," said Naomi C. Earp, Chair of the Equal Employment Opportunity Commission.
"The Freedom to Compete Award showcases the most innovative employer programs to promote fair and open competition in the 21st century workplace without regard to race, color, gender, religion, national origin, age or disability,” Earp said. “We applaud the 2007 winners, whose practices serve as models for employers across the nation."
Wednesday, September 26, 2007
Tuesday, September 25, 2007
IR-2007-161: New Online Employer Identification Number Application Processes Requests in Minutes
New Online Employer Identification Number Application Processes Requests in Minutes
WASHINGTON — Taxpayers can now request an Employer Identification Number (EIN) through a Web-based system that instantly processes requests and generates identification numbers in real time, the Internal Revenue Service announced today.
"This new and improved online application will reduce the time it takes taxpayers to get an EIN," said Richard Morgante, Commissioner of the IRS Wage & Investment Division. "Essentially they can get one while they wait –– within minutes."
Here's how it works. A taxpayer accesses the Internet EIN system through IRS.gov and enters the required information. If the information passes the automatic validity checks, the IRS issues a permanent EIN to the taxpayer. If the information does not pass the validity checks, it is rejected. The taxpayer then has an opportunity to correct the information and resubmit the application.
The Internet EIN application is interactive and asks questions tailored to the type of entity the taxpayer is establishing. This is similar to popular tax processing software packages on the market.
The system provides "help" screens throughout the application process. This means taxpayers will no longer have to print the EIN instructions and separately search for answers while requesting an EIN.
When the EIN application process is complete, a taxpayer has the option to view, print and save his or her confirmation notice, as opposed to waiting for the IRS to mail it. Third parties authorized by the taxpayer can also be provided with the EIN, but the third party cannot view, print or save the confirmation notice. Instead, the confirmation notice is mailed to the taxpayer.
An EIN assigned through Internet submission is immediately recognized by IRS systems. Taxpayers can begin using the EIN immediately for most business purposes.
WASHINGTON — Taxpayers can now request an Employer Identification Number (EIN) through a Web-based system that instantly processes requests and generates identification numbers in real time, the Internal Revenue Service announced today.
"This new and improved online application will reduce the time it takes taxpayers to get an EIN," said Richard Morgante, Commissioner of the IRS Wage & Investment Division. "Essentially they can get one while they wait –– within minutes."
Here's how it works. A taxpayer accesses the Internet EIN system through IRS.gov and enters the required information. If the information passes the automatic validity checks, the IRS issues a permanent EIN to the taxpayer. If the information does not pass the validity checks, it is rejected. The taxpayer then has an opportunity to correct the information and resubmit the application.
The Internet EIN application is interactive and asks questions tailored to the type of entity the taxpayer is establishing. This is similar to popular tax processing software packages on the market.
The system provides "help" screens throughout the application process. This means taxpayers will no longer have to print the EIN instructions and separately search for answers while requesting an EIN.
When the EIN application process is complete, a taxpayer has the option to view, print and save his or her confirmation notice, as opposed to waiting for the IRS to mail it. Third parties authorized by the taxpayer can also be provided with the EIN, but the third party cannot view, print or save the confirmation notice. Instead, the confirmation notice is mailed to the taxpayer.
An EIN assigned through Internet submission is immediately recognized by IRS systems. Taxpayers can begin using the EIN immediately for most business purposes.
Monday, September 24, 2007
IR-2007-160: Treasury Chooses AT&T for TNet under Networx Universal
Treasury Chooses AT&T for TNet under Networx Universal
WASHINGTON — The Internal Revenue Service, on behalf of the U.S. Department of the Treasury, today announced the selection of AT&T as the network services provider for the Treasury Network (TNet) acquisition. This award was made under the Federal Acquisition Service's Networx Universal contract and meets requirements formerly described as the Treasury Communications Enterprise (TCE) program. The overall contract value is estimated at $270 million over the life of the contract.
In December 2006, Treasury elected to use the General Services Administration's Networx program to integrate its telecommunications requirements into a single Treasury-wide network infrastructure. Under the Networx program, Treasury will utilize a fully managed network service, coupled with service level agreements and performance incentives to deliver secure voice, data and video communications. "We are extremely pleased with GSA's professionalism and responsiveness in enabling us to rapidly award this task order on the Networx contract," said Michael Duffy, Treasury Chief Information Officer. "We got a top quality technical solution at prices that exceeded our expectations."
"Treasury is the first agency to have completed a fair opportunity decision on the Networx Universal contract and expect they will be the first agency to begin ordering service," said Karl Krumbholz, Director of Network Services Programs at the General Services Administration. "We are extremely pleased to have assisted Treasury in meeting their network service requirements and found them to have a very strong and highly professional technical and contracting team that was a pleasure to work with. We look forward to a positive and productive relationship with the Treasury TNet Program in the years ahead."
Links:
* Department of the Treasury -- http://www.ustreas.gov/
* IRS Procurement -- http://www.irs.gov/opportunities/procurement/index.html
WASHINGTON — The Internal Revenue Service, on behalf of the U.S. Department of the Treasury, today announced the selection of AT&T as the network services provider for the Treasury Network (TNet) acquisition. This award was made under the Federal Acquisition Service's Networx Universal contract and meets requirements formerly described as the Treasury Communications Enterprise (TCE) program. The overall contract value is estimated at $270 million over the life of the contract.
In December 2006, Treasury elected to use the General Services Administration's Networx program to integrate its telecommunications requirements into a single Treasury-wide network infrastructure. Under the Networx program, Treasury will utilize a fully managed network service, coupled with service level agreements and performance incentives to deliver secure voice, data and video communications. "We are extremely pleased with GSA's professionalism and responsiveness in enabling us to rapidly award this task order on the Networx contract," said Michael Duffy, Treasury Chief Information Officer. "We got a top quality technical solution at prices that exceeded our expectations."
"Treasury is the first agency to have completed a fair opportunity decision on the Networx Universal contract and expect they will be the first agency to begin ordering service," said Karl Krumbholz, Director of Network Services Programs at the General Services Administration. "We are extremely pleased to have assisted Treasury in meeting their network service requirements and found them to have a very strong and highly professional technical and contracting team that was a pleasure to work with. We look forward to a positive and productive relationship with the Treasury TNet Program in the years ahead."
Links:
* Department of the Treasury -- http://www.ustreas.gov/
* IRS Procurement -- http://www.irs.gov/opportunities/procurement/index.html
Tuesday, September 18, 2007
IR-2007-159: Special Web Section Unveiled for Homeowners Who Lose Homes; Foreclosure Tax Relief Available to Many
Special Web Section Unveiled for Homeowners Who Lose Homes; Foreclosure Tax Relief Available to Many
WASHINGTON — The Internal Revenue Service unveiled a special new section today on IRS.gov for people who have lost their homes due to foreclosure. The IRS also reassured homeowners that, although mortgage workouts and foreclosures can have tax consequences, special relief provisions can often reduce or eliminate the tax bite for financially strapped borrowers who lose their homes.
The new section of IRS.gov includes a variety of information, including a worksheet designed to help borrowers determine whether any of the foreclosure-related relief provisions apply to them. For those taxpayers who find they owe additional tax, it also includes a form they can use to request a payment agreement with the IRS. In some cases, eligible taxpayers may qualify to settle their tax debt for less than the full amount due using an offer-in-compromise.
The IRS urges struggling homeowners to consider their options carefully before giving up their homes through foreclosure.
Under the tax law, if the debt wiped out through foreclosure exceeds the value of the property, the difference is normally taxable income. But a special rule allows insolvent borrowers to offset that income to the extent their liabilities exceed their assets.
The IRS cautions that under the law, relief may be limited or unavailable in some situations where, for example, part or all of a home was ever used for business or rented out.
Borrowers whose debt is reduced or eliminated receive a year-end statement (Form 1099-C) from their lender. By law, this form must show the amount of debt forgiven and the fair market value of property given up through foreclosure. Though the winning bid at a foreclosure auction is normally a property’s fair market value, it may not necessarily reflect its true value in some cases.
The IRS urges borrowers to check the Form 1099-C carefully. They should notify the lender immediately if any of the information shown on their form is incorrect. Borrowers should pay particular attention to the amount of debt forgiven (Box 2) and the value listed for their home (Box 7).
The IRS also reminds lenders of their obligation to provide accurate information on the Form 1099-C. By law, the lender must send a copy of this form to the IRS. IRS follow-up contacts with taxpayers involved in foreclosure are based largely on the information reported on this form, and whether it conflicts with information provided by the taxpayer on their federal income tax return.
The IRS normally initiates these follow-up contacts by sending the borrower a notice. The tax agency urges borrowers with questions to call the phone number shown on the notice. The IRS also urges borrowers who wind up owing additional tax and are unable to pay it in full to use the installment agreement form, normally included with the notice, to request a payment agreement with the agency.
Related Item:Questions and Answers on Home Foreclosure and Debt Cancellation -- http://www.irs.gov/newsroom/article/0,,id=174034,00.html
WASHINGTON — The Internal Revenue Service unveiled a special new section today on IRS.gov for people who have lost their homes due to foreclosure. The IRS also reassured homeowners that, although mortgage workouts and foreclosures can have tax consequences, special relief provisions can often reduce or eliminate the tax bite for financially strapped borrowers who lose their homes.
The new section of IRS.gov includes a variety of information, including a worksheet designed to help borrowers determine whether any of the foreclosure-related relief provisions apply to them. For those taxpayers who find they owe additional tax, it also includes a form they can use to request a payment agreement with the IRS. In some cases, eligible taxpayers may qualify to settle their tax debt for less than the full amount due using an offer-in-compromise.
The IRS urges struggling homeowners to consider their options carefully before giving up their homes through foreclosure.
Under the tax law, if the debt wiped out through foreclosure exceeds the value of the property, the difference is normally taxable income. But a special rule allows insolvent borrowers to offset that income to the extent their liabilities exceed their assets.
The IRS cautions that under the law, relief may be limited or unavailable in some situations where, for example, part or all of a home was ever used for business or rented out.
Borrowers whose debt is reduced or eliminated receive a year-end statement (Form 1099-C) from their lender. By law, this form must show the amount of debt forgiven and the fair market value of property given up through foreclosure. Though the winning bid at a foreclosure auction is normally a property’s fair market value, it may not necessarily reflect its true value in some cases.
The IRS urges borrowers to check the Form 1099-C carefully. They should notify the lender immediately if any of the information shown on their form is incorrect. Borrowers should pay particular attention to the amount of debt forgiven (Box 2) and the value listed for their home (Box 7).
The IRS also reminds lenders of their obligation to provide accurate information on the Form 1099-C. By law, the lender must send a copy of this form to the IRS. IRS follow-up contacts with taxpayers involved in foreclosure are based largely on the information reported on this form, and whether it conflicts with information provided by the taxpayer on their federal income tax return.
The IRS normally initiates these follow-up contacts by sending the borrower a notice. The tax agency urges borrowers with questions to call the phone number shown on the notice. The IRS also urges borrowers who wind up owing additional tax and are unable to pay it in full to use the installment agreement form, normally included with the notice, to request a payment agreement with the agency.
Related Item:Questions and Answers on Home Foreclosure and Debt Cancellation -- http://www.irs.gov/newsroom/article/0,,id=174034,00.html
Tuesday, September 11, 2007
IR-2007-158: Back-to-School Tax Breaks Help Teachers Pay Classroom Costs; Aid Parents, Students With College Tuition
Back-to-School Tax Breaks Help Teachers Pay Classroom Costs; Aid Parents, Students With College Tuition
WASHINGTON — With the new school year now under way, the Internal Revenue Service today reminded teachers, parents and students that saving receipts and keeping good records can help them take advantage of various education-related deductions and credits on their 2007 federal income tax return.
“The start of the school year is a good time to remind parents, students and teachers to save all receipts related to tax-advantaged education expenses,” said IRS Acting Commissioner Linda Stiff. “Good recordkeeping makes sense because it can help avoid missing a deduction or credit at tax time.”
Deductions reduce the income on which tax is figured. Credits reduce the overall tax. Though both can lower a person’s year-end tax bill or increase their refund, credits normally result in greater tax savings.
The educator expense deduction allows teachers and other educators to deduct the cost of books, supplies, equipment and software used in the classroom. Eligible educators include those who work at least 900 hours during a school year as a teacher, instructor, counselor, principal or aide in a public or private elementary or secondary school.
Worth up to $250, the educator expense deduction is available, whether or not the educator itemizes their deductions on Schedule A. In tax-year 2005, teachers and educators deducted just over $893 million of these out-of-pocket classroom expenses. Under current law, this deduction is scheduled to expire at the end of this year.
Three key tax breaks—the tuition and fees deduction, the Hope credit and the lifetime learning credit—help parents and students pay for the cost of post-secondary education. All three are available, regardless of whether an eligible taxpayer itemizes their deductions. Under current law, the tuition and fees deduction is scheduled to expire at the end of this year, but the two credits remain in effect. In tax-year 2005, taxpayers claimed tuition and fees deductions totaling nearly $11 billion and education credits of almost $6.2 billion.
Normally, a taxpayer can claim tuition and required enrollment fees paid for their own and their dependent’s college education. A taxpayer cannot take both an education credit and the tuition and fees deduction for the same student in the same year. Income limits and other special rules apply to each of these provisions. Education credits are claimed on Form 8863, and the tuition and fees deduction for 2007 will be claimed on new Form 8917.
IRS Publication 970, Tax Benefits for Education, can help eligible parents and students understand the special rules that apply and decide which tax break to claim. The publication also describes other education-related tax benefits, including qualified tuition programs (also known as 529 plans), the student loan interest deduction, Coverdell education savings accounts and the education savings bond program.
Publication 970 is posted on IRS.gov or can be obtained, without charge, by calling the IRS toll-free at 1-800-TAX-FORM (829-3676).
WASHINGTON — With the new school year now under way, the Internal Revenue Service today reminded teachers, parents and students that saving receipts and keeping good records can help them take advantage of various education-related deductions and credits on their 2007 federal income tax return.
“The start of the school year is a good time to remind parents, students and teachers to save all receipts related to tax-advantaged education expenses,” said IRS Acting Commissioner Linda Stiff. “Good recordkeeping makes sense because it can help avoid missing a deduction or credit at tax time.”
Deductions reduce the income on which tax is figured. Credits reduce the overall tax. Though both can lower a person’s year-end tax bill or increase their refund, credits normally result in greater tax savings.
The educator expense deduction allows teachers and other educators to deduct the cost of books, supplies, equipment and software used in the classroom. Eligible educators include those who work at least 900 hours during a school year as a teacher, instructor, counselor, principal or aide in a public or private elementary or secondary school.
Worth up to $250, the educator expense deduction is available, whether or not the educator itemizes their deductions on Schedule A. In tax-year 2005, teachers and educators deducted just over $893 million of these out-of-pocket classroom expenses. Under current law, this deduction is scheduled to expire at the end of this year.
Three key tax breaks—the tuition and fees deduction, the Hope credit and the lifetime learning credit—help parents and students pay for the cost of post-secondary education. All three are available, regardless of whether an eligible taxpayer itemizes their deductions. Under current law, the tuition and fees deduction is scheduled to expire at the end of this year, but the two credits remain in effect. In tax-year 2005, taxpayers claimed tuition and fees deductions totaling nearly $11 billion and education credits of almost $6.2 billion.
Normally, a taxpayer can claim tuition and required enrollment fees paid for their own and their dependent’s college education. A taxpayer cannot take both an education credit and the tuition and fees deduction for the same student in the same year. Income limits and other special rules apply to each of these provisions. Education credits are claimed on Form 8863, and the tuition and fees deduction for 2007 will be claimed on new Form 8917.
IRS Publication 970, Tax Benefits for Education, can help eligible parents and students understand the special rules that apply and decide which tax break to claim. The publication also describes other education-related tax benefits, including qualified tuition programs (also known as 529 plans), the student loan interest deduction, Coverdell education savings accounts and the education savings bond program.
Publication 970 is posted on IRS.gov or can be obtained, without charge, by calling the IRS toll-free at 1-800-TAX-FORM (829-3676).
Monday, September 10, 2007
Treasury, IRS Extend Documentation Deadline for 409A Compliance
Treasury, IRS Extend Documentation Deadline for 409A Compliance
IR-2007-157, Sept. 10, 2007
WASHINGTON —The Treasury Department and the Internal Revenue Service (IRS) announced today that taxpayers will have until December 31, 2008 to bring documents into compliance with the final nonqualified deferred compensation regulations under section 409A of the Internal Revenue Code.
In April, Treasury and IRS issued final 409A regulations, which provided guidance regarding the requirements for deferral elections and payment timing under section 409A. Affected plans and arrangements were required to comply with the final regulations by December 31, 2007. IRS Notice 2007-78 extends the document compliance deadline for one year and provides additional limited transition relief, but does not extend the January 1, 2008 effective date of the final regulations.
Notice 2007-78 also announces that Treasury and the IRS anticipate issuing guidance containing a limited voluntary compliance program that will permit corrections of certain unintentional operational violations of section 409A.
The final regulations were in response to legislation enacted by Congress in 2004 to address concerns involving reported abuses of nonqualified deferred compensation plans.
Link to Notice 2007-78: www.irs.gov/pub/irs-drop/n-07-78.pdf
IR-2007-157, Sept. 10, 2007
WASHINGTON —The Treasury Department and the Internal Revenue Service (IRS) announced today that taxpayers will have until December 31, 2008 to bring documents into compliance with the final nonqualified deferred compensation regulations under section 409A of the Internal Revenue Code.
In April, Treasury and IRS issued final 409A regulations, which provided guidance regarding the requirements for deferral elections and payment timing under section 409A. Affected plans and arrangements were required to comply with the final regulations by December 31, 2007. IRS Notice 2007-78 extends the document compliance deadline for one year and provides additional limited transition relief, but does not extend the January 1, 2008 effective date of the final regulations.
Notice 2007-78 also announces that Treasury and the IRS anticipate issuing guidance containing a limited voluntary compliance program that will permit corrections of certain unintentional operational violations of section 409A.
The final regulations were in response to legislation enacted by Congress in 2004 to address concerns involving reported abuses of nonqualified deferred compensation plans.
Link to Notice 2007-78: www.irs.gov/pub/irs-drop/n-07-78.pdf
Thursday, September 6, 2007
IR-2007-156: Two 2008 GM Vehicles Certified As Qualified Hybrids
Two 2008 GM Vehicles Certified As Qualified Hybrids
WASHINGTON — The Internal Revenue Service has acknowledged the certification by General Motors Corp. that two of its Model Year 2008 vehicles meet the requirements of the Alternative Motor Vehicle Credit as qualified hybrid motor vehicles.
The credit amount for the certified 2008 model year hybrid vehicles are:
* Chevrolet Malibu hybrid — $1,300
* Saturn Aura hybrid — $1,300
Original purchasers of these vehicles may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
WASHINGTON — The Internal Revenue Service has acknowledged the certification by General Motors Corp. that two of its Model Year 2008 vehicles meet the requirements of the Alternative Motor Vehicle Credit as qualified hybrid motor vehicles.
The credit amount for the certified 2008 model year hybrid vehicles are:
* Chevrolet Malibu hybrid — $1,300
* Saturn Aura hybrid — $1,300
Original purchasers of these vehicles may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
Tuesday, September 4, 2007
IR-2007-153: IRS Issues Summer 2007 Statistics of Income Bulletin
IRS Issues Summer 2007 Statistics of Income Bulletin
WASHINGTON — The Internal Revenue Service today announced the release of the summer 2007 issue of the Statistics of Income Bulletin, featuring data from 21.5 million individual income tax returns that reported non-farm sole proprietorship activity in tax year 2005.
Profits from all non-farm sole proprietorships totaled $269.9 billion in 2005, up 9 percent from tax year 2004. After adjusting for inflation, profits rose by 5.5 percent in 2005, which is the biggest year-to-year increase since a 7.2 percent gain in 1998.
All but one sole proprietor industrial sector saw an increase in profits in tax year 2005.
The real estate and rental leasing sector posted a 19.4 percent gain in profits, which was the biggest in percentage terms among the sector categories. Transportation and warehousing was second highest with a 15.5 percent profit gain. Retail trade was third with a 14.6 percent increase. (The sector-specific figures have not been adjusted for inflation.)
Wholesale trade (merchant wholesalers) was the only sole proprietor industrial sector to post a profit decline in tax year 2005 of 3.5 percent.
The Bulletin also includes articles about:
Foreign-controlled domestic corporations (FCDCs): These companies are relatively few in number but their economic impact is big. For example, FCDCs were just 1 percent of all U.S. corporations in tax year 2004 but accounted for 13.5 percent of all U.S. corporate receipts that year, totaling $3.1 trillion. FCDCs had a U.S. tax liability of $29.9 billion in 2004.
Federal excise taxes: Federal excise tax receipts totaled $76.1 billion in fiscal year 2006. This represented a 1.2 percent increase from the prior year and a 35.9 percent gain from 1996. Excise taxes, levied on the manufacture, sale or consumption of certain goods or services, accounted for 3 percent of total receipts for the U.S. government in fiscal year 2006.
Estate tax returns: The total number of estate tax returns filed fell by 58 percent to about 45,000 in 2005 from about 108,000 in 2001. The total amount of assets represented by these returns also fell but by far less. Total gross estate (assets) on these returns fell by 14 percent to $185 billion in 2005 from $216 billion in 2001. Meanwhile, net estate taxes reported on these returns declined by even less, only 8 percent.
The Bulletin also includes articles on the history of estate taxes, as well as the evolution of the foreign tax credit and controlled foreign corporations in the face of ever-more complex international corporate structures.
For historical data on income, deductions and various forms of reported taxes, visit the IRS Web site, www.irs.gov, and click on "Tax Stats." From the Tax Stats page, select "SOI Bulletins" under "Products, Publications, & Papers" and click on "Historical Tables and Appendix." These pages also include data on tax collections and refunds.
The Statistics of Income Bulletin is available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. The annual subscription rate is $53 ($74.20 overseas), single issues cost $39 ($48.75 overseas).
For more information about this data, write the Director, Statistics of Income (SOI) Division, RAS:S, Internal Revenue Service, P.O. Box 2608, Washington, DC 20013-2608; or call SOI's Statistical Information Services at (202) 874-0410; or fax to (202) 874-0964.
To access an electronic version of the summer 2007 issue of the Bulletin, from the "SOI Bulletins" page described above, select "Summer 2007."
WASHINGTON — The Internal Revenue Service today announced the release of the summer 2007 issue of the Statistics of Income Bulletin, featuring data from 21.5 million individual income tax returns that reported non-farm sole proprietorship activity in tax year 2005.
Profits from all non-farm sole proprietorships totaled $269.9 billion in 2005, up 9 percent from tax year 2004. After adjusting for inflation, profits rose by 5.5 percent in 2005, which is the biggest year-to-year increase since a 7.2 percent gain in 1998.
All but one sole proprietor industrial sector saw an increase in profits in tax year 2005.
The real estate and rental leasing sector posted a 19.4 percent gain in profits, which was the biggest in percentage terms among the sector categories. Transportation and warehousing was second highest with a 15.5 percent profit gain. Retail trade was third with a 14.6 percent increase. (The sector-specific figures have not been adjusted for inflation.)
Wholesale trade (merchant wholesalers) was the only sole proprietor industrial sector to post a profit decline in tax year 2005 of 3.5 percent.
The Bulletin also includes articles about:
Foreign-controlled domestic corporations (FCDCs): These companies are relatively few in number but their economic impact is big. For example, FCDCs were just 1 percent of all U.S. corporations in tax year 2004 but accounted for 13.5 percent of all U.S. corporate receipts that year, totaling $3.1 trillion. FCDCs had a U.S. tax liability of $29.9 billion in 2004.
Federal excise taxes: Federal excise tax receipts totaled $76.1 billion in fiscal year 2006. This represented a 1.2 percent increase from the prior year and a 35.9 percent gain from 1996. Excise taxes, levied on the manufacture, sale or consumption of certain goods or services, accounted for 3 percent of total receipts for the U.S. government in fiscal year 2006.
Estate tax returns: The total number of estate tax returns filed fell by 58 percent to about 45,000 in 2005 from about 108,000 in 2001. The total amount of assets represented by these returns also fell but by far less. Total gross estate (assets) on these returns fell by 14 percent to $185 billion in 2005 from $216 billion in 2001. Meanwhile, net estate taxes reported on these returns declined by even less, only 8 percent.
The Bulletin also includes articles on the history of estate taxes, as well as the evolution of the foreign tax credit and controlled foreign corporations in the face of ever-more complex international corporate structures.
For historical data on income, deductions and various forms of reported taxes, visit the IRS Web site, www.irs.gov, and click on "Tax Stats." From the Tax Stats page, select "SOI Bulletins" under "Products, Publications, & Papers" and click on "Historical Tables and Appendix." These pages also include data on tax collections and refunds.
The Statistics of Income Bulletin is available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. The annual subscription rate is $53 ($74.20 overseas), single issues cost $39 ($48.75 overseas).
For more information about this data, write the Director, Statistics of Income (SOI) Division, RAS:S, Internal Revenue Service, P.O. Box 2608, Washington, DC 20013-2608; or call SOI's Statistical Information Services at (202) 874-0410; or fax to (202) 874-0964.
To access an electronic version of the summer 2007 issue of the Bulletin, from the "SOI Bulletins" page described above, select "Summer 2007."
IR-2007-154: No Change in the Interest Rates for the Fourth Quarter, 2007
No Change in the Interest Rates for the Fourth Quarter, 2007
WASHINGTON – The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning Oct. 1, 2007. The interest rates are as follows:
* 8 percent for overpayments (7 percent in the case of a corporation);
* 8 percent for underpayments;
* 10 percent for large corporate underpayments; and
* 5.5 percent for the portion of a corporate overpayment exceeding $10,000.
The rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points.
The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus 0.5 of a percentage points.
The interest rates announced today are computed from the federal short-term rate based on daily compounding determined during July 2007.
Revenue Ruling 2007-56, announcing the new rates of interest, is attached and will appear in Internal Revenue Bulletin No. 2007-39, dated Sept. 24, 2007.
WASHINGTON – The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning Oct. 1, 2007. The interest rates are as follows:
* 8 percent for overpayments (7 percent in the case of a corporation);
* 8 percent for underpayments;
* 10 percent for large corporate underpayments; and
* 5.5 percent for the portion of a corporate overpayment exceeding $10,000.
The rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points.
The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus 0.5 of a percentage points.
The interest rates announced today are computed from the federal short-term rate based on daily compounding determined during July 2007.
Revenue Ruling 2007-56, announcing the new rates of interest, is attached and will appear in Internal Revenue Bulletin No. 2007-39, dated Sept. 24, 2007.
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