Victoria Majors Jones, CPA - Blog

In an about face, the IRS has now changed their position and will no longer require businesses to reconcile their gross receipts with merchant card transactions reported on Form 1099-K on their 2012 or later returns.

Steven T. Miller, IRS deputy commissioner for services and enforcement, said in writing to the National Federation of Independent Business that no reconciliation will be required on 2012 or future business tax returns.  

2011 business returns include a separate line to report 1099-K gross receipts, but the IRS instructions say “For 2011, enter 0." The line was to become effective in 2012 but it appears that this line may disappear altogether when the forms are finalized by the IRS for the 2012 tax year. 

(This obviously does not mean that business don't have to report this taxable income.  It just means that they don't have to separately report 1099-K gross receipts from other gross receipts on their business returns.)

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Congress has passed and sent to the President for his signature H.R. 658, the FAA Air Transportation Modernization and Safety Improvement Act (the Act). While focusing on subjects such as improved aviation safety and capacity, and streamlined aviation programs, this legislation carries tax changes, including a change for certain corporations repurchasing debt, new rollover options for certain qualifying airline employees, and a number of aviation-related excise tax changes.

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The IRS website now has an on-line search tool that allows users to select an exempt organization and check information about its federal tax status and filings.  You can now search for organizations that:

Are eligible to receive tax-deductible charitable contributions (Publication 78 data),

Have had their tax-exempt status automatically revoked because they have not filed Form 990 series returns or notices annually as required for three consecutive years (Auto-Revocation List),

or

Have filed a Form 990-N annual electronic notice (e-Postcard).

The Exempt Organizations Select Check webpage can be accessed at

http://www.irs.gov/charities/article/0,,id=249767,00.html.

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The Jan. 17, 2012 deadline is fast approaching for estates of decedents who died in 2010 to choose zero estate tax—with beneficiaries being limited to the decedents' basis plus certain increases under Code Sec. 1022—by filing a Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent. (Please be sure to consult a professional tax advisor before electing zero estate taxes as it will not always give you the best tax benefit. )

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