Issue Number: 2013-8
Inside This Issue
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IRS Extends the Comment Period on Acceptable e-Signature Standards
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Remember to Report 2010 Roth Conversions on 2012 Returns
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Do Your Clients Qualify for Education Credits?
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Additional Counties Qualify for Tax Relief after Severe Storms, Tornadoes and Flooding in Mississippi
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New Offer in Compromise Pre-Qualifier Available
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Technical Guidance
1. IRS Extends the Comment Period on Acceptable e-Signature Standards
Responding to industry requests for additional time, the IRS has extended until May 1, the deadline for recommendations and comments on IRS Announcement No. 2013-8 pertaining to electronic signatures.
E-signature standards are intended to promote efficiency and reduce burden. Announcement 2013-8 provides details on the proposed standards. Submit recommendations and comments to mailto:e-signature@irs.gov by May 1.
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2. Remember to Report 2010 Roth Conversions on 2012 Returns
Taxpayers who converted amounts to a Roth IRA or designated Roth account in 2010 in most cases must report half of the resulting taxable income on their 2012 returns.
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3. Do Your Clients Qualify for Education Credits?
Now is a good time to see if your clients qualify for either of two college education tax credits or any of several other education-related tax benefits.
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4. Additional Counties Qualify for Tax Relief after Severe Storms, Tornadoes and Flooding in Mississippi
More Mississippi counties have been added to the disaster area declared following severe storms, tornadoes and flooding that took place on Feb. 10. Taxpayers within the disaster area may qualify for tax relief from the Internal Revenue Service.
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5. New Offer in Compromise Pre-Qualifier Available
An item in a previous edition of e-News announcing the IRS Offer in Compromise (OIC) Pre-Qualifier tool contained the wrong URL to access the Pre-Qualifier. Here is the correct link.
The OIC Pre-Qualifier can help you determine a client’s OIC eligibility and calculate a preliminary offer amount.
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6. Technical Guidance
Notice 2013-18 supersedes Notice 2000-45 to remove blackberry, raspberry, and papaya plants from the list of plants with a preproductive period in excess of two years, for purposes of determining the applicability of section 263A to taxpayers engaged in the farming business.
Notice 2013-18 will be published in Internal Revenue Bulletin 2013-14, dated April 1, 2013.
Revenue Procedure 2013-20 provides procedures for a taxpayer to obtain the automatic consent of the Commissioner under section 446(e) to change its method of accounting to elect not to apply section 263A to a plant removed from the list and modifies the Appendix of Revenue Procedure 2011-14.
Revenue Procedure 2013-20 will be published in Internal Revenue Bulletin 2013-14, dated April 1, 2013.
Notice 2013-16: We are modifying and superseding the appendix to Notice 2013-1, which provides a list of tribes that have settled trust management litigation cases against the United States, because two new tribes had settled trust management litigation cases since the publication of Notice 2013-1.
Notice 2013-16 will appear in Internal Revenue Bulletin 2013-14, dated April 1, 2013.
Revenue Ruling 2013-7 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274.
The rates are published monthly for purposes of sections 42, 382, 412, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.
Revenue Ruling 2013-7 will be in IRB 2013-8, dated February 19, 2013.
Corrected version of Revenue Ruling 2013-7.
On February 19, 2013, the IRS released Rev. Rul. 2013-7, to be published in I.R.B. 2013-11 dated March 11, 2013, setting forth the Applicable Federal Rates (AFRs) for March 2013. On Feb. 5, 2013, the IRS and Treasury Department released Notice 2013-4, which solicits comments on the methodology used for computing the adjusted AFRs (which appear in Table 2 and Table 3 of the monthly AFRs), and provides interim guidance for computing the adjusted AFRs. Notice 2013-4 provides that the interim guidance for computing the adjusted AFRs will be reflected in the monthly revenue rulings beginning with the rates for March 2013. The adjusted AFRs in Table 2 and Table 3 of Rev. Rul. 2013-7 have been corrected to reflect the interim guidance provided in Notice 2013-4.
This version will appear in IRB 2013-11 dated March 11, 2013.
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