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Weekly News from NATP
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IRS Provides Penalty Relief to Certain Farmers
The IRS announced that it will provide penalty relief to farmers who incur estimated tax penalties because they did not timely receive Forms 1099 from MF Global or its court appointed trustee, and were unable to file their 2011 calendar year tax return by March 1, 2012. The IRS also provided the affected farmers with instructions on how to apply for this penalty relief.
To request a waiver of the estimated tax penalty, complete Form 2210-F, Underpayment of Estimated Tax by Farmers and Fisherman. As stated in the instructions to Form 2210-F, a short statement should be attached to the form stating that you received a late 1099 from MF Global. More information can be found in IR-2012-37.
2011 Data Book
The IRS released the 2011 IRS Data Book, which reports activities for fiscal year 2011 (October 1, 2010, to September 30, 2011). During the year, the IRS collected $2.4 trillion and processed more than 234 million tax returns.
2011 Form 990, Appendix F Instruction
The 2011 Form 990, Appendix F instructions on reporting Form 1065, Schedule K-1 is optional for tax year 2011. When reporting on Form 990 or Form 990-EZ its proportionate interests in the revenue, expenses and assets of joint ventures and other partnerships in which it has an ownership interest, an organization generally may report based on its books and records.
Tax Relief for Disaster Victims
Areas of West Virginia and Tennessee have been declared a federal disaster area and are eligible for tax relief. The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. Certain deadlines falling on or after February 29, and on or before May 31, have been postponed to May 31, 2012. This includes the April 17 deadline for filing 2011 individual income tax returns, making income tax payments and making 2011 contributions to an IRA. Continue to check the Tax Relief in Disaster Situations website to stay current on eligible areas.
EA Renewal Update Correction
In last week’s issue of the TAXPRO Weekly, we reported that the IRS is behind with processing renewal applications for SSNs ending in 7, 8, 9 and 0. SSNs ending in 0 should not have been included.
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