Daily Tax Update - February 27, 2012: IRS Has $1 Billion In Unclaimed 2008 Refunds

INVITATION:  In conjunction with the TEI 2012 Midyear Conference, we cordially invite you and a guest to join us for a cocktail reception the night of Monday, March 26th. 

  • Please click here for additional details.

IRS HAS $1 BILLION IN UNCLAIMED 2008 REFUNDS:  The IRS announced that it has refunds totaling more than $1 billion for some people who did not file a federal income tax return for 2008. The IRS estimates that half of these potential 2008 refunds are $637 or more.  However, to collect the money, a return for 2008 must be filed with the IRS no later than Tuesday, April 17, 2012.  The law requires that the return be properly addressed, mailed and postmarked by that date.  There is no penalty for filing a late return that qualifies for a refund.

  • Additional information can be accessed here.

JOINT TAX COMMITTEE RELEASES OVERVIEW OF THE FEDERAL TAX SYSTEM:  The Joint Committee on Taxation has released an "Overview of the Federal Tax System as in Effect for 2012."  The document provides a summary of the present-law Federal tax system.  The current Federal tax system has four main elements: (1) an income tax on individuals and corporations (which consists of both a "regular" income tax and an alternative minimum tax); (2) payroll taxes on wages (and corresponding taxes on self-employment income) to finance certain social insurance programs; (3) estate, gift, and generation-skipping taxes, and (4) excise taxes on selected goods and services.  This document provides a broad overview of each of these elements.

  • The document can be accessed here.

As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country.  The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court.  The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving.  Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them. Read more information on Steptoe's tax practice.