Fact Sheets 2005


Notice: Historical Content

This is an archival or historical document and may not reflect current law, policies or procedures.

New Bankruptcy Law Changes Debtors’ Responsibilities

FS-2005-18 — A new bankruptcy law contains provisions requiring debtors to file federal tax returns and make previous tax returns available.

IRS Settlement Initiative

FS-2005-17 — The IRS is offering a one-time opportunity to taxpayers to resolve their tax disputes over certain abusive tax transactions.

Withholding Required on Certain U.S. Real Property Transactions Involving Foreign Persons, IRS Warns

FS-2005-16, September 2005 — The IRS today reminds all real estate and tax professionals of the withholding tax and the filing obligations with respect to two transactions in which a foreign person disposes of a U.S. real property interest.

IRS Obtains More Than 100 Injunctions Against Tax Scheme Promoters

FS-2005-15 — Many of the injunctions order promoters to turn over client lists and to cease preparing federal income tax returns for others.

Understanding the Tax Gap

FS-2005-14 — The tax gap measures the extent to which taxpayers do not file their tax returns and pay the correct tax on time.

States See Son of Boss Benefits; Tax Administrators Praise Efforts

FS-2005-13 –– States are beginning to see results from the IRS Son of Boss settlement initiative. California and New York have also conducted compliance initiatives.

Real Estate Fraud Investigations

FS-2005-12 — A booming real estate market has helped increase mortgage fraud and other phony real estate related schemes.

Executive Stock Option Settlement Initiative

FS-2005-11 — For a tax scheme involving the transfer of stock options or restricted stock to family controlled entities.

Do You Qualify for the Earned Income Tax Credit?

FS-2005-10 — The IRS wants all eligible taxpayers, but only those who are eligible, to claim the EITC. Review the rules for taxpayers and tax professionals.

IRS Details 2005 Free File Initiative

FS-2005-9 — Taxpayers with access to a computer and the Internet may be eligible for free online tax preparation and free electronic filing.

Tax Preparer Fraud

FS-2005-8 — The Internal Revenue Service warns taxpayers to steer clear of disreputable preparers.

A “Qualifying Child”

FS-2005-7 — A “qualifying child” may enable a taxpayer to claim several tax benefits. Prior to 2005, each of these items defined a qualifying child was defined differently for differing purposes.

Sales Tax Deduction Option

FS-2005-6 — Taxpayers have an option to claim state and local sales taxes instead of state and local income taxes when they itemize deductions.

Electronic Payment Options for 2005

FS-2005-5 — Taxpayers can pay taxes electronically by authorizing an e-pay option.

2005 IRS e-file

FS-2005-4 — More than 61 million Americans chose IRS e-file options in 2004 .

Tax Packages — 2005 Filing Season

FS-2005-3 — 29.5 million tax packages and about 11 million computer-filing brochures were mailed this year.

Free Tax Help Available

FS-2005-2 — The IRS offers free assistance by computer, fax, telephone and in person; get forms, publications and answers to a wide range of tax questions.

Highlights — 2004 Tax Law Changes

FS-2005-1 — Some recent tax law changes are effective for the 2004 Tax Year. Be sure to consider the details when you prepare your 2004 tax return.

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