Daily Tax Update - April 15, 2010

HOUSE SENDS TAXPAYER ASSISTANCE BILL TO SENATE: Yesterday, the House voted 399 to 9 to pass the “Taxpayer Assistance Act of 2010 (H.R. 4994).” It is unclear when the Senate will act on the bill.

  • The bill would:
    • Eliminate the strict substantiation rules requiring individuals to keep detailed records regarding cell phones and similar equipment used for business purposes.
    • Require the IRS to pay interest on refunds related to individual income tax returns that are filed electronically if the refund is not paid within 30 days of the later of the return due date or the date the return is filed.
    • Help taxpayers enter into offer-in-compromise agreements to settle their federal tax liabilities, and increase the likelihood that some amount of tax is collected by repealing the partial payment requirement.
  • The two revenue provisions in the bill would:
    • Clarify that the penalty applicable to bad checks or money orders extends to all commercially acceptable instruments of payment (i.e., electronic payments).
    • Increase the penalties for failing to file correct returns, failing to furnish correct payee statements, and failing to comply with other information reporting requirements.

MISCELLANEOUS GUIDANCE RELEASED TODAY: Notice 2010-30 provides an extension of time to pay tax until October 15, 2010 to civilian spouses of military service members working in American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, or the US Virgin Islands (“US territory”) but claiming residence or domicile for tax purposes in a State or the District of Columbia pursuant to the Military Spouses Residency Relief Act (“MSRRA”). In addition, this notice provides procedures for filing claims for refund of federal income taxes to civilian spouses of military service members working in a State or the District of Columbia but claiming residence or domicile for tax purposes in a US territory under MSRRA.

S.3205: A bill to amend the Internal Revenue Code of 1986 to provide that fees charged for baggage carried into the cabin of an aircraft are subject to the excise tax imposed on transportation of persons by air.
Sponsor: Sen Schumer, Charles E. [NY] (introduced 4/14/2010)      Cosponsors (11)

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