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| Note: Please do not call our office or send us e-mails regarding the enclosed subject matter. Additional information for some topics will be discussed in detail at our upcoming seminars. To register for our seminars please go to www.btbtaxlink.com |
May 2009 Tax News Update
Newsletter Topics: (click on the topic title below to jump directly to the topic)
Form 941-X – New Form for 2009 (SBTW Day 2 Topic)
IRS Reminds Small Tax-Exempt Organizations to File e-Postcards IR-2009-49 by May 15
COBRA Health Insurance Continuation Premium Subsidy (SBTW Day 2 Topic)
Technical Guidance
Form 941-X – New Form for 2009 (SBTW Day 2 Topic)
The Internal Revenue Service has developed Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, to replace Form 941c, Supporting Statement to Correct Information. Use Form 941 to make corrections to previously filed Forms 941.
Form 941-X will also replace Form 843, Claim for Refund Request for Abatement, for employers to request a refund or abatement of overreported employment taxes. Continue to use Form 843 when requesting a refund or
abatement of assessed interest or penalties.
IRS Reminds Small Tax-Exempt Organizations to File e-Postcards IR-2009-49
The Internal Revenue Service reminded many small tax-exempt organizations to file their annual electronic informational return with the IRS by the May 15 deadline.
This is the second year of the new requirement for tax-exempt organizations whose gross annual receipts are normally $25,000 or less to file Form 990-N also known as e-Postcards. The process is fast and easy.
The May 15 deadline applies to all small organizations whose tax year ends on December 31. Organizations whose tax year is different from the calendar year must file the e-Postcard by the 15th day of the 5th month after
the close of their tax year.
“The leadership of these small organizations tends to change rather frequently, so it is important to remind everyone of this filing requirement,” said Lois Lerner, director of the IRS’s Exempt Organizations division. “It’s
important for an organization to file. If it fails to do so for three consecutive years, it will automatically lose its tax-exempt status.”
The e-Postcard is a simple, Internet-based form that asks a few identifying questions about the organization. The e-Postcard must be filed online; there is no paper option.
COBRA Health Insurance Continuation Premium Subsidy (SBTW Day 2 Topic)
The American Recovery and Reinvestment Act of 2009 established an employer-provided subsidy for employees who involuntarily lost their jobs between September 1, 2008, and December 31, 2009. In addition, workers who lost their jobs between September 1, 2008, and the date of enactment, but failed to initially elect COBRA because it was unaffordable, received an additional 60 days to elect COBRA and receive the subsidy.
Workers who have lost their jobs may qualify for a 65 percent subsidy for COBRA continuation premiums for themselves and their families for up to nine months. In other words, the eligible workers will have to pay 35 percent of the premium to their former employers.
Technical Guidance
Revenue Ruling 2009-11 provides that differential pay that employers pay to their employees who leave their jobs to go on active military duty is subject to income tax withholding but is not subject to Federal Insurance Contributions Act (“FICA”) or Federal Unemployment Tax Act (“FUTA”) taxes. (SBTW Day 2 Topic)
Revenue Ruling 2009-13 provides guidance to policyholders who surrender or sell their life insurance contracts. (Part I Topic)
Revenue Ruling 2009-14 provides guidance to investors who purchase life insurance contracts. (Part I Topic)
Reminder: Register early and save. The early registration discount is still available until May 31, 2009. (Click here: www.btbtaxlink.com to register today.)
BTB Income Tax Seminars' Newsletter Archive
Our Instructors:
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Thomas Zoeller
EA, CFP, MST
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James Hockenberry
EA |
John Geigel
JD, CPA
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Jaye Tritz
EA, CFP, ChFC
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Disclaimer
This publication is distributed with the understanding that the author and publisher are not engaged in rendering legal, accounting or other professional advice and assume no liability in connection with its use. Tax laws are constantly changing; are subject to differing interpretation; and the facts and circumstances in your particular situation may not be the same as those presented here. Therefore, we urge you to do additional research and make sure that you are fully informed and knowledgeable before using the information contained in this publication.
www.btbtaxlink.com
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