IRS Tax Center Back to Homepage
Headliners and News
Disaster Information:
Special tax relief and assistance is available to taxpayers in the Presidentially-declared Disaster Areas.Help for Hurricane Victims:
http://www.irs.gov/newsroom/article/0,,id=147085,00.html
http://www.irs.gov/newsroom/article/0,,id=108362,00.htmlOverview
Starting, Operating or Closing a Business
Whether you are a budding entrepreneur, or an established business owner, you will find everything you need to
start and manage your business venture.
http://www.irs.gov/businesses/small/article/0,,id=110417,00.htmlBusiness Taxes
The form of business you operate determines what taxes you must pay and how you pay them.
http://www.irs.gov/businesses/small/article/0,,id=98966,00.htmlGetting Started
Tax Information for Businesses
If you run a small business or are self-employed, the IRS web site offers a wide variety of information to help you.
http://www.irs.gov/businesses/small/index.htmlChecklist for Starting a Business
This checklist provides the basic steps you should follow to start a business.
http://www.irs.gov/businesses/small/article/0,,id=98810,00.htmlBusiness Structures
When beginning a business, you must decide what structure to use. Legal and tax considerations enter into this decision.
http://www.irs.gov/businesses/small/article/0,,id=98359,00.htmlEmployer ID Numbers (EINs)
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to
identify a business entity. Generally, businesses need an EIN.
http://www.irs.gov/businesses/small/article/0,,id=98350,00.htmlOnline Application - Form SS-4, Employer Identification Number (EIN)
Apply online for the Employer Identification Number (EIN), also known as a Federal Tax Identification Number.
http://www.irs.gov/businesses/small/article/0,,id=102767,00.htmlIRS Forms and Publications
Forms and Publications
Need an IRS form or publication?
http://www.irs.gov/formspubs/index.html
Electronic Filinge-file for Business and Self-Employed Taxpayers
The IRS offers several electronic filing options designed specifically for the business filer. There are several ways
you may choose to participate in the IRS e-file for Business programs.
http://www.irs.gov/efile/article/0,,id=118520,00.htmlElectronic Federal Tax Payments (EFTPS)
Businesses and individuals can use the Electronic Federal Tax Payment System to pay all their federal taxes electronically,
24 hours a day, 7 days a week, via the phone, personal computer (PC) software or the Internet. Visit the EFTPS web site
for all the latest information! Or visit the Department of Treasury’s Financial Management Services web page on EFTPS.
http://www.eftps.gov/QuickAlerts "More" e-file Benefits for EROs
Get on board and be one of the thousands of tax professionals that currently receive information on “up-to-the-minute”
e-file events.
http://www.irs.gov/taxpros/providers/article/0,,id=97623,00.html
Employees
Businesses with Employees
Information about hiring, recordkeeping, and other topics for business owners with employees.
http://www.irs.gov/businesses/small/article/0,,id=98862,00.html
Independent Contractors vs. Employees
Before you can determine how to treat payments you make for services, you must first know the business relationship
that exists between you and the person performing the services.http://www.irs.gov/businesses/small/article/0,,id=99921,00.html
Employment Taxes for Small Business
If you have employees, you are responsible for Federal Income Tax Withholding, Social Security and Medicare taxes
and Federal Unemployment Tax Act (FUTA).
http://www.irs.gov/businesses/small/article/0,,id=172179,00.htmlIRS Withholding Calculator
This easy-to-use calculator can help you figure your employees’ Federal Income Tax Withholding so you can withhold
the correct amount from their pay.
http://www.irs.gov/individuals/article/0,,id=96196,00.htmlRetirement Plans for Small Businesses
Are you looking for information on employee retirement plans in order to provide better service to all your employees?
http://www.irs.gov/retirement/content/0,,id=97203,00.htmlTalk With the IRS
Contact My Local Office
IRS Taxpayer Assistance Centers are your one-stop resource for face-to-face tax help and solutions to tax problems,
every business day.
http://www.irs.gov/localcontacts/index.htmlTaxpayer Advocate Service
The Taxpayer Advocate is an independent organization within the IRS. They help taxpayers resolve problems with
the IRS and recommend changes that will prevent the problems.
http://www.irs.gov/advocate/index.html
Learning Center
On-Line Classroom
View a streaming video of an IRS Small Business Workshop, take an IRS course or complete an online self-directed
version of a workshop taught live around the country.
http://www.irs.gov/businesses/small/article/0,,id=97726,00.htmlSmall Business Tax Workshops
Throughout the country various non-profit and government organizations offer small business workshops.
http://www.irs.gov/businesses/small/article/0,,id=99202,00.html
Resources
Small Business Resources
This section offers links to a broad range of resources across federal and state agencies.
http://www.irs.gov/businesses/small/content/0,,id=98864,00.htmlSmall Business Products Online Ordering
Looking for a tool to help you meet your tax requirements? Choose from our free products, developed especially
for the Small Business/Self-Employed person, and obtain updated information on existing products.
http://www.irs.gov/businesses/small/article/0,,id=101169,00.htmlJoin the SB/SE Mailing List
The Small Business/Self-Employed Division has a free electronic mail service designed to provide tax information for
small business owners. Sign-up for the Small Business/Self-Employed mailing list and you will receive information
about important upcoming tax dates, what's new on the IRS Web site, recently added tax forms and publications,
IRS News Releases and special IRS announcements.
http://www.irs.gov/businesses/small/content/0,,id=154826,00.html[Note for partners: the URL for the mailing list is subject to change without notice, and should be reviewed monthly for viability.]
Abusive Tax Schemes
Tax Scams - How to Recognize and Avoid Them
To help the public recognize and avoid abusive tax schemes, the IRS offers an abundance of educational materials.
Participating in illegal schemes to avoid paying taxes can result in imprisonment and fines, as well as the repayment
of taxes owed with penalties and interest. Education is the best way to avoid the pitfalls of these "too good to be true"
tax scams.
http://www.irs.gov/businesses/small/article/0,,id=106788,00.html
Resources for Specific Communities
Industries/Professions
Specific tax information for Agriculture, Automotive, Construction, Entertainment, Fishing, Gas Retailers, Manufacturing,
Real Estate, Restaurants, Tax Professionals, and other industries.
http://www.irs.gov/businesses/small/industries/index.htmlTax Information for International Businesses
This section provides information on international taxes.
http://www.irs.gov/businesses/international/index.htmlTax Information for Tax Professionals
This section provides information for tax practitioners and other tax professionals.
http://www.irs.gov/taxpros/index.html
IRS Web Link Usage Guidelines
Version 1.0, 08/25/2004
Introduction: This information sheet and accompanying digital files for the IRS Web Link are available to IRS partners
for placement on their web sites, to insure a consistent link identifier to the official IRS web site (http://www.irs.gov ).Usage: The IRS Web Link should be used only on the partner's site and not on any print materials whatsoever. If the
partner chooses to use one of the three graphic versions provided, the URL encoded must correctly link to the official IRS
web site (http://www.irs.gov). Whether the html code used takes the user to the IRS site within the same browser window
or launches a new browser window is strictly a choice of the site owner. The site owner isn't required to use the three
graphic versions of the IRS Web Link, and can simply use the official IRS web site URL as a text-only reference.Clear Space:A mandatory clear space must surround placement of the IRS Web link at all times, as specified per
each of the three sizes provided.Orientation & Association: The IRS Web Link must be used only according to specifications in this information
sheet. It should never be rotated, stretched, distorted, reduced, enlarged nor edited in any way. When used on a
web page with any other logos, the mandatory clear space per each of the three sizes must be doubled.Color: The color version is hexadecimal web-safe color 0066CC only, provided as a set of ".gif" graphic files. A
set of black .gif files and white .gif files are also provided. See notes accompanying each set for correct background
color relationships allowed, but preferably the blue or black versions should be use on a white background, and the
white .gif's should be used on blue, black or gray (40-100%).IRS Logo Artwork
Blue, 0066CC only
Inline, Blue
Clear space on all
sides is 10 pixels.Small, Blue
Clear space on all
sides is 10 pixels.Medium, Blue
Clear space on all
sides is 15 pixels.Large, Blue
Clear space on all
sides is 20 pixels.Primarily use on white or very light color backgrounds. Do not use on extremely
vivid, saturated color backgrounds. If used on gray, use on 40-0% value.Black
Inline, Black
Clear space on all
sides is 10 pixels.Small, Black
Clear space on all
sides is 10 pixels.Medium, Black
Clear space on all
sides is 15 pixels.Large, Black
Clear space on all
sides is 20 pixels.Primarily use on white or very light color backgrounds. Do not use on extremely
vivid, saturated color backgrounds. If used on gray, use on 40-0% value.http://online.wsj.com/article/SB123128601819059077.html
Many Taxpayers Stand to Gain From New Laws
Wealthy Likely to Benefit Most From 2009 Changes; Putting More in Your 401(k)
By Tom Herman; The Wall Street Journal ~ Jan 06, 2009
New Year's Day brought relief for most taxpayers, especially upper-income ones -- even as President-elect Barack Obama is proposing new tax cuts as part of his wide-ranging economic-stimulus package.
Starting Jan. 1, the basic federal estate-tax exemption jumped to $3.5 million from $2 million in 2008. This large increase is expected to result in a major decline in the number of estates subject to the tax for 2009. It also will mean significant tax savings for many larger estates that are affected, says Sidney Kess, a New York lawyer and accountant.
Standard Deductions
· The basic standard deduction for joint filers for the 2009 tax year will be $11,400, up from $10,900 for 2008.
· For singles, the amount for 2009 will be $5,700, up from $5,450.
· The amounts are higher for those age 65 or older, for the blind, for those who paid real-estate taxes and for those with losses from federally declared disasters.
Among other notable changes: The maximum amount that savers can contribute to a 401(k) plan increased. Many high-income taxpayers will benefit from changes affecting personal exemptions and certain deductions. And many Americans who live and work in other countries will be able to exclude more of their pay from U.S. tax collectors.
But not all the automatic 2009 changes will spell relief. For one thing, many people who suffer personal casualty and theft losses in 2009 won't be able to deduct as much. And about 11 million workers will pay higher Social Security taxes this year.
Much larger changes are expected soon from Washington in response to the economic crisis. President-elect Obama and congressional leaders are working on a wide-ranging plan that includes large cuts for both individuals and businesses.
While it's not yet known what will become law or when the changes will take effect, Congress will likely pass relief from the alternative minimum tax, or AMT. Unless lawmakers do something, tens of millions of Americans will have to pay higher taxes for 2009.
Here are some of the major changes that automatically became law on Jan. 1. While these won't affect tax returns for 2008, they may help taxpayers with 2009 planning.
Estate and gift taxes. The increase in the basic estate-tax exemption amount to $3.5 million stems from a 2001 law. (Transfers from one spouse to the other typically remain tax-free.) "Many estate plans and wills will have to be modified to take into account this increased exemption amount," Mr. Kess says.
The top federal estate-tax rate for 2009 remains unchanged at 45%. In 2010, the estate tax is supposed to disappear entirely for that one year only -- but that isn't likely to happen. During the campaign, then-Sen. Obama proposed retaining the $3.5 million exclusion amount and the 45% top rate in coming years.
The annual gift-tax exclusion rose to $13,000, up $1,000 from 2008. This means you can give as much as $13,000 this year to anyone you wish, or to as many people as you want, without having to worry about taxes or even having to file any forms with the Internal Revenue Service. It's a simple way to help others and reduce the size of your taxable estate. You can give even more than that by paying directly for someone else's tuition or medical expenses. Just be sure to pay the institution directly.
The lifetime gift-tax exclusion amount remains unchanged at $1 million.
Retirement savings. The maximum amount that someone under age 50 can contribute to a 401(k) plan for 2009 rose to $16,500 from $15,500. Those 50 or older can put away an additional $5,500 this year, for a total of $22,000, up from $20,500.
Minimum distributions. President George W. Bush recently signed legislation that allows millions of people who are 70½ or older to skip taking distributions from IRAs and certain other retirement plans during 2009. That new law, however, didn't provide any relief for 2008 -- as many investors had been hoping for from Congress, the Treasury Department or both.
Social Security taxes. The maximum amount of earnings subject to Social Security taxes rose to $106,800, up 4.7% from $102,000 in 2008. That means the maximum additional tax on an employee earning above last year's wage base will be $297.60, according to CCH, a unit of Wolters Kluwer. High-income self-employed workers may owe as much as $595.20 in additional self-employment tax but can recoup some of it through deducting it on their federal income-tax return, CCH said.
Nanny taxes. Employers who pay nannies and other household employees a certain amount, or more, each year typically are required to pay Social Security and Medicare taxes on their wages. For 2009, the dollar threshold is $1,700, up from $1,600 for 2008, says Mark Luscombe of CCH.
Working in other countries. Many Americans who live and work abroad are eligible to exclude a certain amount of their pay from U.S. income taxes. The so-called foreign earned income exclusion for 2009 is $91,400, up from $87,600 for 2008, Mr. Luscombe says.
Casualty and theft losses. For 2008, the general rule for most taxpayers was that personal casualty and theft losses could be deducted only to the extent they exceeded 10% of adjusted gross income -- and that was after reducing each loss by $100. But for 2009, that $100 dollar amount rose to $500. For more details, see IRS Publication 17 on the IRS Web site (www.irs.gov).
Mileage rates. Taxpayers who use their vehicles for work can deduct their actual costs or rely on the IRS's optional standard mileage rate. This year, the IRS rate for using your car for business will be 55 cents a mile. That's down from 58.5 cents in the second half of 2008 but up from 50.5 cents in the first half. Separately, the IRS rate for medical or moving purposes will be 24 cents a mile. That's down from 27 cents in last year's second half but up from 19 cents in the first half. The mileage rate for helping charitable organizations remains unchanged at 14 cents; this one is set by law, not the IRS.
Stealth taxes. These refer to laws that increase taxes owed by millions of upper-income Americans without actually raising the official tax rates. They're known as stealth taxes because they're often complex and difficult to detect.
Among them is a provision known as "Pease," named after a former congressman, which imposes limits on certain itemized deductions for taxpayers whose incomes exceed a certain amount. The good news for taxpayers is that the dollar threshold rose again: For the 2009 tax year, most taxpayers will begin to lose some of the value of these itemized deductions if their adjusted gross income exceeds $166,800, up from $159,950 in 2008.
Another stealth-tax provision imposes limits on personal-exemption amounts. Warning: Calculating the precise limits can be tricky, especially because of tax-law changes that have reduced the amount of those limits.
* * *
THE IRS EXPANDS a free electronic-filing offer.
This year, as in past years, the IRS and a group of private-sector software companies are offering free tax preparation and e-filing services through what's known as the "Free File" program. Anyone with an adjusted gross income of up to $56,000, or about 98 million Americans, can use the standard Free File options this year for their 2008 return, the IRS said Tuesday.
The big change this year is that "virtually everyone" -- even those with higher incomes -- will be able to fill out and file their tax forms electronically. However, this new option will be much more limited than other Free File programs. It will allow taxpayers to enter their data, do basic math, sign returns electronically, print returns and e-file them. More details are expected later this month.
This year, taxpayers can begin filing electronically on Jan. 16, the IRS said.
* Email: taxreport@wsj.com.
Copyright 2008 Dow Jones & Company, Inc. All Rights Reserved
SOCIAL SECURITY
Dear Colleague:
Social Security is proud to announce the launch of a new online retirement application at www.socialsecurity.gov.
What are some of the benefits of Social Security’s new application?
· The new application can be completed in as little as 15 minutes.
· There’s no need to drive to a local Social Security office or wait for an appointment.
· In most cases, once you complete the application – you’re done - there are no paper forms to sign and usually no documentation is required.
I’m excited to share this news with you and I hope that you’ll visit www.socialsecurity.gov to find more information about Social Security’s new online retirement application and to view new public service announcements, featuring the agency’s new spokesperson, Patty Duke!
Please share this important information with your members, colleagues and other interested parties.
I look forward to the opportunity to discuss our new online retirement application with you.
Sincerely,
Cheri Arnott
Associate Commissioner
for External Affairs
News from headliners click for pdf
