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                              TAX YEAR 2008

  1. Recovery Rebate Credit
  2. Taxpayers in Four States File with Different Centers
  3. Telephone Survey Begins
  4. Tax Hints
  5. National Disaster Relief
  6. Technical Guidance
1. Recovery Rebate Credit
If any of you did not get the economic stimulus payment last year, they may be eligible for the recovery rebate credit. But chances are if they did get the economic stimulus payment, they can’t claim the recovery rebate credit on their 2008 federal income tax return. Get quick links on IRS.gov to help you determine whether your clients qualify for the credit and how to claim it.
2. Taxpayers in Four States File with Different Centers
News release IR-2009-7 announces that taxpayers in Delaware, Illinois, New York and Rhode Island who file paper income tax returns will send them to different processing centers this year.
3. Telephone Survey Begins
On Jan. 21, the IRS Small Business/Self-Employed division began conducting its annual telephone survey of taxpayers who file certain income tax forms, including 1120, 1120A, 1120S, 1065 and 1040 with schedules C, E or F. Your small business clients may be randomly selected to participate and their opinions will help improve IRS services.
4. Tax Hints
The latest Tax Hints issue is now available. Get ready for the filing season with these key messages from the IRS.
5. National Disaster Relief
Fact sheet FS-2009-8 covers details about the National Disaster Relief Act of 2008 that provides tax relief for victims of federally declared disasters occurring after Dec. 31, 2007, and before Jan. 1, 2010. Back to top
6. Technical Guidance
Notice 2009-15 sets forth the manner in which the Treasury Department and the IRS will determine and announce the credit rates for certain tax credit bonds for purposes of sections 54, 54A, 1400N(l), and similar provisions. It will be published in IRB 2009-6 dated Feb. 9, 2009.

Revenue Procedure 2009-16 supplements Rev. Proc. 2008-65, 2008-44 I.R.B. 1082, to provide additional guidance under section 3081 of the Housing and Economic Recovery Act of 2008. It will be published in IRB 2009-6 dated Feb. 9, 2009 

Taxpayers in Four States File with Different Centers this Year Washington — The Internal Revenue Service announced today that taxpayers in Delaware, Illinois, New York and Rhode Island who file paper income tax returns will send them to different processing centers this year. Taxpayers in Delaware, New York and Rhode Island will now send their tax returns to the IRS Kansas City Service Center in Kansas City, Mo. Taxpayers in Illinois will now send their tax returns to the IRS Fresno Service Center, in Fresno, Calif. The IRS continuously monitors work flow at its centers and makes appropriate adjustments by altering the volume of returns to be sent to each. Taxpayers who use the envelope provided with the income tax instructions do not have to be concerned with the address change, their returns automatically will go to the correct center. Taxpayers who e-file will not be affected by the address changes. The majority of filers choose IRS e-file; it’s faster, easier, more accurate and more convenient than filing a paper tax return. For taxpayers who file paper returns, the correct center addresses are on labels inside the tax packages they receive in the mail. Taxpayers who do not receive a package and need the service center address should refer to the back cover of the instructions to Form 1040, 1040A and 1040EZ.
     Tips for Taxpayers Making a Move  If you changed your home or business address, you’ll want to remember these six tips to ensure you receive any refunds or correspondence from the IRS. 1. You can change your address on file with the IRS in several ways:
  • Correct the address legibly on the mailing label that comes with you tax package
  • Write the new address in the appropriate boxes on your tax return;
  • Use Form 8822, Change of Address, to submit an address or name change any time during the year
  • Give the IRS written notification of your new address by writing to the IRS center where you file your return. Include your full name, old and new addresses, Social Security Number or Employer Identification Number and signature. If you filed a joint return, be sure to include the information for both taxpayers. If you filed a joint return and have since established separate residences, both taxpayers should notify the IRS of your new addresses
  • Should an IRS employee contact you about your account, you may be able to verbally provide a change of address
2. Be sure to also notify your employer of your new address so you get your W-2 forms on time. 3. If you change your address after you’ve filed your return, don’t forget to notify the post office at your old address so your mail can be forwarded. 4. Taxpayers who make estimated payments throughout the year should mail a completed Form 8822, Change of Address, or write the IRS center where you file your return. You may continue to use your old pre-printed payment vouchers until the IRS sends you new ones with your new address. However, do not correct the address on the old voucher. 5. The IRS does use the Postal Service’s change of address files to update taxpayer addresses, but it’s still a good idea to notify the IRS directly. 6. Visit IRS.gov for more information about changing your address. You can find the address of the IRS center where you file your tax return or download Form 8822, Change of Address. The form is also available by calling 800-TAX-FORM (800-829-3676). Owe the IRS a Prior Year Return?  Don’t delay; file your prior year return now! The failure to file a federal tax return can be costly — whether you end up owing more or missing out on a refund. If you owe taxes, a delay in filing may result in a failure-to-file penalty and interest charges. The longer you delay, the larger these charges grow. If you are due a refund and don’t file you could lose your refund. There is no penalty for failure to file if you are due a refund. However, you cannot obtain a refund without filing a tax return. If you wait too long to file, you may risk losing the refund altogether. The deadline for claiming refunds is generally three years after the return due date. There are several reasons taxpayers don’t file their taxes.  Perhaps you didn’t know you were required to file. Maybe, you just keep putting it off or simply forgot. Whatever the reason, it’s best to file your return as soon as possible. If you need help, even with a late return, the IRS is ready to assist you. Here are some steps for filing your prior year return: 1. Gather prior year tax return information. You will need Social Security numbers, income information and records for expenses, deductions and credits. 2. Determine if you have a filing requirement.  Whether or not you must file a tax return will depend upon a number of factors, including your filing status, age, and gross income. Individuals who are entitled to the Earned Income Tax Credit must file their return to claim the credit even if they are not otherwise required to file. 3. Get forms and publications. Make sure you get the forms and publications for the year of the tax return you are filing. 4. Prepare your tax return. Complete, sign and date your tax return. Be sure to attach any required schedules and forms. 5. Mail the completed and signed prior year return to the correct address. Mailing a return to an incorrect address can delay the processing of the return. If your income was $42,000 or less, your local Taxpayer Assistance Center may be able to assist you in preparing your prior year return. You can locate your nearest center at http://www/irs.gov/localcontacts/index.html.  For more information on how to file a tax return for a prior year, visit the IRS Web What Tax Records to Keep  You probably already keep records in your daily routine. This includes keeping receipts for purchases and recording information in your checkbook. Keeping these and other records will help you avoid headaches at tax time. Good recordkeeping will help you remember the various transactions you made during the year, which in turn may make filing your return a less taxing experience. Records help you document the deductions you’ve claimed on your return. You’ll need this documentation should the IRS select your return for examination. Normally, tax records should be kept for three years, but some documents — such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property — should be kept longer. In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, however, you should keep any and all documents that may have an impact on your federal tax return:
  • Bills
  • Credit card and other receipts
  • Invoices
  • Mileage logs
  • Canceled, imaged or substitute checks or any other proof of payment
  • Any other records to support deductions or credits you claim on your return
Good recordkeeping throughout the year saves you time and effort at tax time when organizing and completing your return. If you hire a paid professional to complete your return, the records you have kept will assist the preparer in quickly and accurately completing your return. For more information on what kinds of records to keep, see IRS Publication 552, Recordkeeping for Individuals, which is available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).   Links:
  • Publication 552, Recordkeeping for Individuals ( PDF 61K