NSA Annual Meeting; August 18-21, 2010; Arlington, VA 
Speak to subject matter experts about the new registration, testing and continuing education requirements for federal tax return preparers. 11 Hours CPE and more!  Click here for a schedule, session information & to register.

IRS Releases Proposed Regulations Related to Fees for Preparer Tax Identification Numbers
The IRS released proposed regulations that would establish a fee for individuals who apply for a preparer tax identification number (PTIN).   The proposed regulations (REG-139343-08) would establish a fee of $50, payable to the IRS, to cover technology costs, as well as compliance and outreach efforts associated with the new PTIN program. The proposed regulations would also provide for an additional fee (expected to be substantially lower than $50) to be charged by the third-party vendor chosen to operate the new online system. That fee amount is expected to be announced soon, as well as additional details about the launch of a new online application system. These fees could change in future years as program costs are reevaluated. Tax professionals and other interested parties have until Aug. 23, 2010, to submit comments regarding the proposed regulations. NSA intends to submit comments and testify at the hearing on these proposed regulations scheduled for August 24. Click here for text of the rules.

IRS To Phase-In Mandatory E-File for Preparers Over Two Years
The IRS recently announced on its web site that mandatory e-filing for tax return preparers under the Worker, Homeownership and Business Assistance Act of 2009 (2009 Worker Act) will be phased-in over two years. Starting in 2011, the mandatory e-filing threshold for practitioners who prepare and file returns will fall from 250 returns under current law to 100 or more returns. Preparers will be required to use IRS e-file beginning:
- January 1, 2011 for preparers who anticipate preparing 100 or more federal individual or trust tax returns during the year; or
- January 1, 2012 for preparers who anticipate preparing 11 or more federal individual or trust tax returns during the year.
The phase-in is a result of the IRS ETAAC (Electronic Tax Administration Advisory Committee) proposal. "The phase-in period is targeted to practitioners who prepare a small number of returns and are not e-filing," NSA EVP John Ams said in the CCH Standard Federal Tax Report. The announcement can be found on the IRS Website. NSA will keep you updated with the latest on this issue as information becomes available.

Homebuyer Assistance and Improvement Act
The Homebuyer Assistance and Improvement Act is now headed to President Obama’s desk for his expected signature.  Click here to read a Special Tax Briefing on the Act. Frustrated over the progress of general tax extenders legislation, the House singled out homebuyer credit extension relief and approved it 409-5 in this stand-alone bill on June 29, 2010. The Senate followed suit on June 30, approving H.R. 5623 by unanimous consent. The new law extends the closing date deadline, from June 30, 2010 to September 30, 2010, for homebuyers who signed sales contracts prior to May 1, 2010. To off set the estimated $140 million price tag of this relief, the new law includes three revenue provisions: a delay in the transfer of Travel Promotion Board fees, clarification of the bad check penalty for e-payments, and return-disclosure authorization to prevent homebuyer credit fraud among prison inmates.

National Society of Accountants Supports Amendment to Eliminate Section 413 from American Jobs and Closing Tax Loophole Act of 2010
NSA has sent a letter to U.S. Senators supporting an amendment to the American Jobs and Closing Tax Loophole Act of 2010 proposed by Senators Mike Enzi (R-Wyo.) and Olympia Snowe (R-Maine). Their amendment to the bill, which was passed by the U.S. House of Representatives, would eliminate Section 413 which, as written, would result in a significant increase in taxes and complexity for S corporations and their shareholders.  Click here for the full release and NSA letter.

House Passes Small Business Tax Relief Package
A package of small business tax incentives was passed by the House on June 15. The Small Business Jobs Tax Relief Act of 2010 (H.R. 5486) includes a 100-percent gain exclusion for qualified small business stock, retroactive Code Sec. 6707A penalty relief and an enhanced deduction for startup expenses.  Click here for a Special Tax Briefing on the bill. 

IRS Issues Regulations Requiring PTINS
As expected, the IRS has issued regulations requiring all paid tax return preparers to have a valid PTIN by December 31 of this year. The regulations will be published March 26 and provide, among other things, that:
  *  Beginning after December 31, 2010, all tax return preparers must have a preparer tax identification number  or other prescribed identifying number; 
  * A tax preparer's identification number will exclusively be the identification number prescribed by the IRS;
  * Identifying number issued by the Internal Revenue Service prior to the effective date of this regulation will expire on December 31, 2010, unless properly renewed;
  *  The IRS may conduct a tax compliance check on a tax return preparer who applies for or renews a PTIN or other prescribed identifying number.
Click here to view the IRS Release.
Click here for NSA Comments on PTIN Regulations

IRS 941 Forms & The Stimulus Act
The stimulus bill - technically the American Recovery and Reinvestment Act of 2009 - bill provides a 65% subsidy for COBRA continuation premiums for up to 9 months for workers who have been involuntarily terminated, and for their families. To qualify for premium assistance, a worker must be involuntarily terminated between September 1, 2008 and December 31, 2009. The subsidy would terminate upon offer of any new employer-sponsored health care coverage or Medicare eligibility. Workers who were involuntarily terminated between September 1, 2008 and enactment, but failed to initially elect COBRA because it was unaffordable (note: how is that determination made?), would be given an additional 60 days to elect COBRA and receive the subsidy. The employer is reimbursed for the cost of the subsidy by treating the amount that is reimbursable to the entity as a credit against its liability for payroll taxes (if this amount is insufficient, IRS or Treasury will directly reimburse the employer).

The IRS released a revised Form 941 so that employers can properly report their employment tax liabilities under the new law. A copy of the new Form 941, 941ss and instructions can be found below:
Form 941
Form 941ss
Form 941 Instructions

NSA Annual Meeting
August 18-21, 2010
Arlington, VA 

NSA LNC
September 24-26, 2010
Oklahoma City, OK
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NSA 2010 Fee Survey
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ASO Reporter- July 2010
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