The Senate is getting ready to pass a small business tax bill. One of the revenue raisers is the following: The Senate bill would require qualified taxpayers who receive rental income from real property to file information returns with the IRS and to service providers reporting payments of $600 or more during the year for rental property expenses. The Senate bill would substantially increase the penalties for failing to timely file all types of information returns with the IRS.
The other concerns re-registration for eveyone that has a PTIN: The proposed $50 PTIN user fee is part of the agency’s return preparer oversight initiative. All paid tax return preparers must register with the IRS, pay a registration fee and obtain a PTIN. Practitioners who already have a PTIN must nonetheless sign-up under the new registration process. The target date for an online registration system is September 1, 2010.
Also, The IRS has announced a voluntary compliance program (VCP) for mid-size exempt organizations to file delinquent Forms 990-EZ, Short Form Return of Organization Exempt from Income Tax, and preserve their exempt status. At the same time, very small exempt organizations may take advantage of an extended filing deadline, October 15, 2010, for Form 990-N, Electronic Notice (ePostcard) to avoid automatic revocation of exempt status.