IMRS Industry Issues Quarterly Report - December 2012
Issue Management Resolution System – Turning Issues into Answers
The Issue Management Resolution System (IMRS) was designed to capture, develop and respond to stakeholder issues. IMRS also identifies nationwide trends in the reporting, filing and paying requirements that may indicate a need to change IRS processes or procedures.
This report provides synopses of some of the issues raised by or of interest to our industry stakeholders. Stakeholders should forward significant issues regarding IRS policies, practices and issues to their Stakeholder Liaison (SL) Local Contacts.
IMRS Issue 08-0000921 - Disclosure by payroll firms about employer responsibility for employment taxes
Issue: A national payroll organization recommended that payroll firms be required to inform their clients that employers remain liable for payment of their payroll taxes. The organization recommended that payroll firms inform their existing clients at least quarterly and their new clients prior to or at the time of contracting for services. They also recommended that payroll firms provide information on how employers can verify the federal and state tax payments made on their behalf.
Response: A requirement to disclose this information is now included in Revenue Procedure 2012-32.
IMRS Issue 12-0001545 - Request for a Spanish webinar on self-employed tax information
Issue: An IRS stakeholder liaison requested a Spanish version of the webinar titled, Business Taxes for the Self-Employed: The Basics.
Response: IRS delivered the webinar in Spanish on Sept. 26, 2012. The webinar is archived in both the English and the Spanish sections of the IRS Video Portal at www.irsvideos.gov.
The Spanish version of the webinar is now available on the IRS video portal at: Impuestos de Negocio para Empleados por Cuenta Propia.
The English version is available on the IRS video portal at: Business Taxes for the Self-Employed: The Basics.
Topics covered by the webinar include reporting profit or loss from a business or profession, self-employment tax and estimated tax payments, Schedules C and C-EZ, deducting business expenses, husband and wife businesses, and recordkeeping.
IMRS Issue 12-0001684 – Processing of Form 1120-H
Issue: A stakeholder inquired about the processing of Form 1120-H, U.S. Income Tax for Homeowners Associations. The form allows a taxpayer to apply all or a portion of an overpayment to the subsequent year or to request refund of the overpayment. The stakeholder completed Line 26 of the form requesting that the overpayment be applied to the subsequent year, but the stakeholder received a refund of the overpayment.
Response: We researched the problem and found that an IRS programming problem caused the overpayment to be refunded rather than applied to the subsequent year as requested. IRS corrected the problem on Sept. 30, 2012. Thank you for bringing this issue to our attention. We apologize for any inconvenience.
IMRS Issue 09-0001135 – Agriculture tax deposit requirements/reminders in Spanish
Issue: Stakeholder liaisons in California and the Midwest identified a need for employment tax information in Spanish for the agricultural industry.