IRS Issues Section 436 Sample Amendment, Extends Anti-Cutback Relief

IRS Issues Section 436 Sample Amendment, Extends Anti-Cutback Relief

Wednesday, November 30, 2011
fromDaily Tax Report
IRS issues Notice 2011-96 containing a sample plan amendment that defined benefit plan sponsors can adopt to comply with limitations on the accrual and payment of benefits when single-employer defined benefit plans are underfunded. In the notice, IRS also extends the deadline to amend plans to satisfy tax code Section 436 and extends the period during which those amendments are eligible for relief from the anti-cutback provisions of tax code Section 411(d)(6). Final Treasury Department and IRS regulations under Sections 430(d), (f), (g), (h)(2), and (i) and 436 were released in 2009. Section 436 generally is effective for plan years that began on or after Jan. 1, 2008.
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IRS Official: 457(f) Guidance to Be Used to ‘Clean Up’ 409(A) Regulations

IRS Official: 457(f) Guidance to Be Used to ‘Clean Up’ 409(A) Regulations

Thursday, December 01, 2011
fromDaily Tax Report
IRS will use proposed rules for Internal Revenue Code Section 457(f) regulations, dealing with deferred compensation plans available primarily through nonprofit entities and government employers, to correct minor errors in Section 409A, an IRS official says. Stephen B. Tackney, special counsel to the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), says the “clean up” of Section 409A would involve technical items that need to be corrected. As an example, Tackney notes that the current Section 409A regulations dealing with the ability to terminate deferred compensation plans that are in bankruptcy includes the incorrect Bankruptcy Code section.
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IRS to Host Public Meeting Dec. 8 on Real-Time Tax System

IRS to Host Public Meeting Dec. 8 on Real-Time Tax System

IR-2011-114, Nov. 30, 2011

WASHINGTON –– The Internal Revenue Service will kick off a series of public meetings  Thursday, Dec. 8 to gather feedback on how to implement a series of long-term changes to the tax system described by IRS Commissioner Doug Shulman in an April 2011 speech at the National Press Club.  In that speech, the Commissioner described a vision where the IRS would move away from the traditional “look back” model of compliance, and instead perform substantially more “real time,” or upfront matching of tax returns when they are first filed with the IRS.  The goal of this initiative is to improve the tax filing process by reducing burden for taxpayers and improving overall compliance upfront.

Under the vision of a real-time tax system, the IRS could match information submitted on a tax return with third-party information right up front during processing and could provide the opportunity for taxpayers to fix the tax return before acceptance if it contains data that does not match IRS records

By contrast, today the IRS conducts a significant number of compliance activities months after the tax return has been filed and processed.  It is not uncommon for a taxpayer to receive a notice 12 to 18 months after a tax return is filed.  This after-the-fact compliance approach can create problems and frustrations for both taxpayers and the IRS.

At the public meetings, IRS officials will solicit feedback and input from outside stakeholders to provide comments and insight. The first meeting will feature representatives of consumer groups, the tax professional community and government representatives.  A future public meeting will include, among others, representatives of the employer and payroll community, the software industry, financial institutions and additional government representatives.

The first meeting, scheduled at 9:00 a.m. on Dec. 8, will take place at the IRS Headquarters Building Auditorium, 1111 Constitution Ave., NW, Washington, D.C. Those who would like to attend the meeting should e-mail the IRS at CL.NPL.Communications@irs.gov with the contact information for the attendees or call the IRS at 202-622-3359.

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