Daily Tax Update - May 23, 2013: IRS Offices to be Closed May 24 Due to Sequester

THE DAILY TAX UPDATE WILL BE PUBLISHED ON A PERIODIC BASIS UNTIL CONGRESS RETURNS JUNE 4

IRS OFFICES TO BE CLOSED MAY 24 DUE TO SEQUESTER The IRS announced additional details about the closures planned for May 24, June 14, July 5, July 22, and August 30, 2013.

The IRS said, “Due to the current budget situation, including the sequester, all IRS operations will be closed on those days. This means that all IRS offices, including all toll-free hotlines, the Taxpayer Advocate Service and the agency’s nearly 400 taxpayer assistance centers nationwide, will be closed on those days.  IRS employees will be furloughed without pay.  No tax returns will be processed and no compliance-related activities will take place.  The IRS noted that taxpayers should continue to file their returns and pay any taxes due as usual."

Additional information can be accessed here.

IRS REMINDS THOSE WITH FOREIGN ASSETS OF U.S. TAX OBLIGATIONS:  Today, the IRS reminded U.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2012, that they may have a U.S. tax liability and a filing requirement in 2013.

According to the IRS, “The filing deadline is Monday, June 17, 2013, for U.S. citizens and resident aliens living overseas, or serving in the military outside the U.S. on the regular due date of their tax return.  Eligible taxpayers get two additional days because the normal June 15 extended due date falls on Saturday this year.  To use this automatic two-month extension, taxpayers must attach a statement to their return explaining which of these two situations applies.  See U.S. Citizens and Resident Aliens Abroad for additional information on extensions of time to file.”  The IRS added, “Nonresident aliens who received income from U.S. sources in 2012 also must determine whether they have a U.S. tax obligation.  The filing deadline for nonresident aliens can be April 15 or June 17 depending on sources of income.  See Taxation of Nonresident Aliens on IRS.gov.”

TAX REFORM OPTIONS PAPER ON ECONOMIC SECURITY:  The Senate Finance Committee has released an options paper titled, Economic Security 

MISCELLANEOUS GUIDANCE RELEASED:
Revenue Ruling 2013-10 announces the rates of interest, it will appear in Internal Revenue Bulletin 2013-26, dated June 24, 2013.

TAX BILLS INTRODUCED MAY 22:

1.[113rd] H.R.2116 : To amend the Internal Revenue Code of 1986 to make improvements in the earned income tax credit.
Sponsor: Rep Neal, Richard E. [MA-1] (introduced 5/22/2013)      Cosponsors (16) 
Committees: House Ways and Means 
Latest Major Action: 5/22/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


2. [113rd] S.1007 : A bill to amend the Internal Revenue Code of 1986 to include biomass heating appliances for tax credits available for energy-efficient building property and energy property.
Sponsor: Sen King, Angus S. Jr. [ME] (introduced 5/22/2013)      Cosponsors (1) 
Committees: Senate Finance 
Latest Major Action: 5/22/2013 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.


3. [113rd] S.1015 : A bill to amend the Internal Revenue Code of 1986 to allow credits for the purchase of franchises by veterans.
Sponsor: Sen Casey, Robert P., Jr. [PA] (introduced 5/22/2013)      Cosponsors (1) 
Committees: Senate Finance 
Latest Major Action: 5/22/2013 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.