Internal Revenue Service Phone Numbers

Practitioner Hotline         866-860-4259  Refunds                      800-829-1954

Criminal Investigation     800-829-0433  Forms                         800-829-3676

Pensions/Exempt Org      877-829-5500  Taxpayer Advocate    877-777-4778

Power of Attorney Fax Line—Ogden      801-620-4249

EFTPS Customer Service                        800-945-8400 or 800-555-4477

Federal Employer ID Number                  866-816-2065

Apply online for an EIN by going to www.IRS.gov - click on Businesses, click on Small Bus/Self-employed, click on Employer ID Numbers.  

IRS Launching New Sub Chapter S Compliance Study

Now that IRS has just about wrapped up work on the first phase of the National Research Program Audits that targeted individual taxpayers, IRS is shifting attention to Sub Chapter S Corps and other pass-through entities.  The IRS will select 5,000 Sub S returns for detailed scrutiny in a study that will last about two years.  IRS will use data gained from NRP audits and the S Corporation study to modify the parameters by which they select returns for audit in an effort to better target compliance efforts and reduce the number of “no change” audits.

IRS to Accept Facsimile Signatures on Employment Tax Returns

IRS has issued new rules allowing corporate officers or duly authorized agents to sign employment tax forms by facsimile, including alternative signature methods such as computer software programs or mechanical devices.  Revenue Procedure 2005-39 outlines the procedures.  Rev. Proc. 2005-39 applies to any form in the 940 series, including Form 940, Form 941, Form 943, and Form 945.  It also applies to Form 1042, Form 8027, Form CT-1, and any variant of these forms such as 941c or From 941SS.  

IRS to Discontinue Package X and Publication 1045

Package X will become obsolete in the summer of 2005.  The IRS claims it will save $1.8 million in printing and postage costs.  The Tax Professional Mailing list will no longer be needed and will be discontinued in 2006.  In late summer the IRS will mail one final copy of Publication 1045, Tax Professionals Guide to Federal Tax Products, containing order blanks and information about other sources for individual tax products.  

Clean-Fuel Vehicle Deduction

The IRS has certified the 2006 Lexus RX 400h, the 2006 Toyota Highlander Hybrid, the 2005 Honda Civic Hybrid, and the 2005 Honda Accord Hybrid as being eligible for the clean-burning fuel deduction.  Taxpayers purchasing one of these vehicles new during calendar year 2005 may claim a tax deduction of up to $2,000.     

This one-time deduction must be taken in the year the vehicle is originally used.  Under the Working Families Act of 2004 the clean-burning fuel deduction is limited to up to $2,000 for certified vehicles first put into service in 2005 and $500 for vehicles placed in service in 2006.  No deduction will be allowed after 2006.  

IRS Announces Rules for Donations of Vehicles to Charity

On June 3rd the IRS released additional guidance on charitable deductions for donated vehicles.  The American Jobs Creation Act (AJCA) generally limits the deduction for vehicles to the actual sales price of the vehicle when sold by the charity.  The AJCA does provide limited exceptions under which a donor may claim a fair market value deduction, such as the charity making a significant intervening use of the vehicle — for example regular use to deliver meals on wheels. The guidance announced June 3rd also provides an additional exception to the sale price limit that was not included in the AJCA.  The guidance permits a donor to claim a deduction for the fair market value of a donated vehicle if the charity gives or sells the vehicle at a significantly below-market price to a needy individual, as long as the transfer furthers the charitable purpose of helping a poor person in need of a means of transportation.  The AJCA also requires a donor to substantiate a deduction with an acknowledgement from the charity that the deduction either reflects the sale price or that one of the three exceptions applies.   

Roth 401(k) and 403(b) Options

In 2001, Congress enacted legislation which permits employers to offer employees the option of designating elective deferrals to 401(k) plans and tax-sheltered annuities not as contributions excluded from gross income, but as tax fee distributions — they are being called Roth-401(k) and Roth-403(b).  This provision does not go into effect until the 2006 tax year.   The IRS has issued proposed regulations so that employers have time to amend their existing plans.   

E-Services Outage

From July 21 through August 4, the IRS has scheduled an E-Services outage for a software maintenance upgrade.  E-Services is a suite of products that allows tax professionals and payers to do business with the IRS electronically via the Internet. Visit www.irs.gov  for more information.