Don't Mess With Taxes

Tea Party tax-exempt screenings explained by IRS manager in transcript released by Oversight Committee's top Democrat

2013-06-18T16:19:33-05:00

Rep. Elijah Cummings finally got tired of waiting for his House Oversight and Government Reform colleague Rep. Darrell Issa to produce evidence that Tea Party groups' applications for tax-exempt status were held up for political reasons.

Cummings, the ranking Democrat on the committee that Issa chairs (both men are pictured, with Cummings at left), said he had seen no such proof. In fact, Cummings said that everything he had seen and heard made no mention of White House involvement in the process.

And today -- after I earlier bemoaned no Internal Revenue Service news from Capitol Hill (not that I'm taking any credit or blame for this latest development!) -- Cummings issued his supporting documentation.

The veteran Maryland lawmaker released the full transcript (two parts because of length; Part 1 here and Part 2 here) of an interview with an Internal Revenue Service Screening Group Manager in Cincinnati, the office where the applications for 501(c)(4) tax-exempt status were reviewed.

That manager, a self-identified "conservative Republican" and 21-year veteran of the IRS, denies that he or anyone on his team was directed by the White House to take these actions or that they were politically motivated.

In conjunction with the release of the interview, Cummings sent a letter to Issa, which he also made public. The ranking Democrat told the chairman:

     I am writing to inform you that I am making available to Members of Congress and the public the full transcript of an interview with the IRS Screening Group Manager in Cincinnati, which was conducted jointly by the Oversight Committee and the Ways and Means Committee as part of our investigation into the identification and screening of Tea Party applicants for tax-exempt status. I am attaching a copy of this transcript, with redactions of specific names to protect individual privacy.

Transcript Shows No White House Involvement or Political Motivation

     This interview transcript provides a detailed first-hand account of how these practices first originated, and it debunks conspiracy theories about how the IRS first started reviewing these cases. Answering questions from Committee staff for more than five hours, this official — who identified himself as a "conservative Republican" — denied that he or anyone on his team was directed by the White House to take these actions or that they were politically motivated.

     Instead, the Screening Group Manager explained that the very first case at issue in this investigation was initially flagged by one of his own screeners in February 2010. He told us he agreed that this case should be elevated to IRS employees in Washington because it was a "high profile" application in which the organization indicated that it would be engaging in political activity. He explained that he initiated the first effort to gather similar cases in order to ensure their consistent treatment, and that he took this action on his own, without any direction from his superiors, and without any political motivation. He also confirmed that one of his screeners developed terms subsequently identified by the Inspector General as "inappropriate," such as "Patriot" and "9/12 project," but that he did not become aware that his screener was using these terms until more than a year later.

     These statements from the Screening Group Manager directly contradict several serious and unsubstantiated accusations made by you and several other Republican Committee Chairmen over the past month.

Cummings, appearing on MSNBC's Hardball program, told host Chris Matthews that he has tried to defer to the committee chairman, but decided that this transcript release was necessary to refute allegations that there was a political motive and cover-up in the case.

And yes, said Cummings, he would like to see all the transcripts of interviews on the Tea Party application reviews released to the public.

No word yet from Issa or his office on this transcript and Cummings decision to make it public.

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Fair Tax advocates want to 'End the IRS'

2013-06-18T10:53:40-05:00

We went a week without any public hearings on Internal Revenue Service missteps. Did you miss the brouhaha?

But we at least have a new television ad attacking the tax agency.

The Washington Post Politics blog says the commercial, which calls for the abolishment of the IRS, is airing nationwide and is aimed at Members of Congress.

The TV spot is from Americans for Fair Taxation, a group headed by wealthy Houstonian Leo Linbeck III.

Linbeck has been characterized by some as an electoral anarchist because of the campaigns supported by his super PAC, Campaign for Primary Accountability (CFPA).

The 30-second Fair Tax spot describes the IRS as "out of control" and denounces it for "playing politics."

Its call to "end the IRS" gives viewers a website and toll-free number to get more information and/or make a contribution to the cause.

What is the Fair Tax? The anti-IRS group wants Congress to enact the Fair Tax Act of 2013, introduced as H.R. 25 in the House and S. 122 in the Senate.

The bill would repeal the federal income tax, employment tax and estate and gift tax.

In place of the revenue lost from ending those taxes, the bill would impose a national sales tax on products and services. The tax would start at 23 percent in 2015 and be adjusted for inflation in subsequent years.

The bill would end funding for the IRS after fiscal year 2017. Think of it as a permanent furlough.

So how would the sales tax be collected?

States would have the primary authority for collecting the federal sales tax and sending the money to the U.S. Treasury.

On a symbolic level, the Internal Revenue Code of 1986 would be redesignated as the Internal Revenue Code of 2013.

And because we are talking taxes, the bill would provide some exemptions from the sales tax for property or services purchased for business, export or investment purposes, as well as for state government functions.

Also, lower income families would be eligible for a monthly sales tax rebate.

Finally, if the 16th Amendment to the constitution,the one that created the income tax, is not repealed within seven years after the Fair Tax Act is on the books, the newly created sales tax would end.

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Global leaders to tackle tax evasion at G8 summit, but 'naming and shaming' strategy appears to be shelved

2013-06-17T14:13:09-05:00

Tax avoidance, which by some estimates costs nations worldwide around $3 trillion a year, will be a major topic at the meeting of leaders of the G8 nations -- United States, United Kingdom, Canada, France, Germany, Italy, Japan, Russia -- which began today at the Lough Erne Resort in Northern Ireland.

With taxes taking a top spot on the two-day international agenda, the eight world leaders get the honor of being this week's By the Numbers pick.

G8 host United Kingdom Prime Minister David Cameron has made no secret that "fighting the scourge of tax evasion" is one of his government's priorities.

UK tax haven deal: Cameron took advantage of the coming global gathering to reach a deal over the weekend with UK territories to clamp down on tax evasion.

Among the jurisdictions often cited as offshore tax havens for those seeking to hide cash are the Cayman Islands in the Caribbean and, closer to 10 Downing Street, the Isle of Man and the Channel Islands of Jersey and Guernsey.

But some of the so-called tax haven leaders aren't pleased to be singled out.

"Politicians love scapegoats," Isle of Man Chief Minister Allan Bell told the BBC. Bell also said that his island is a decade ahead of the UK, the United States and other large nations in tracing the ownership of secret bank accounts.

Corporate tax tricks: Bell also took a verbal slap the the U.S., calling the country "selfish" for focusing on overseas tax havens while showing little enthusiasm for tracking down tax evaders in Delaware.

That state is frequently chosen by U.S. businesses as the one in which to incorporate because of Delaware's less stringent tax and regulatory rules.

The issue of corporate taxes has taken on new urgency globally after revelations -- and public anger -- that companies like Apple and Google had used U.S. and European tax structures that critics contend were contrived to minimize the corporate giant's tax bills.

Naming and shaming shelved: In earlier discussions by European Commission members and tax reform advocates, there were hints that G8 nations might consider requiring that companies publicize when they funnel profits into tax haven countries where they have few staff or sales.

Such so-called naming and shaming would, theoretically, curb tax avoidance.

But the preliminary plan that would ask companies to, on a voluntary basis, report their country-by-country profits, revenues and tax payments reportedly has been watered down.

Most countries already have access to such information, but sharing it could help some developing countries who have expressed difficulties in accessing information about companies outside their territory which they suspect to be involved in siphoning profits from affiliated companies on their territory, reports Reuters.

Not surprisingly, companies have lobbied strenuously against the added reporting, which critics say would not be enough to legally prove tax evasion.

So what will the G8 leaders do about global tax evasion?

When the G8 wraps on Tuesday, we'll have some idea of how tough the leaders will be, or at least how tough they say they'll be, on tax haven countries and those who use them.

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Tax breaks for dads on this Father's Day

2013-06-16T14:36:58-05:00

Dad. Pop. Papa. Daddy. Father. Whatever you call your dad, enjoy not only Father's Day, but every day with him.

My dad, whom we lost many years ago way too early, was of the era where fathers didn't play as obvious a role in their children's lives. But my late brother and I knew that both our folks played critical, and loving, roles in our lives.

Father and son fishing. Photo courtesy Sue's Point of View via photopin cc

The debate continues today over a dad's involvement in the day to day upbringing of his kids. I do what works for everyone -- dad, mom and the kiddos -- in your family.

And let your Uncle Sam help out with raising the kids via the federal tax code whenever you can.

Here are some tax tips that all dads (and moms) should check out.

Dependents: Kids cost a lot, but dads and moms can recoup some of that money when they claim qualifying dependent children on their tax returns. Each child counts as an added exemption, a dollar amount (adjusted each year for inflation) that is subtracted from the folks' adjusted gross income to get to a lower taxable income amount.

Filing status: If you're a single dad (or mom), make sure you pick the proper filing status. In most cases, a single parent files as head of household. In addition to claiming the child-related tax breaks, a head of household filer also gets a larger standard deduction and more favorable income tax rates.

When a single dad is a widower, he gets another filing option for a while. The year in which he loses his wife, he can still file a joint tax return. That provides the single dad with the same benefits allowed a married couple.

For the next two years, if the widowed dad then might be able to file as a qualifying widower with a dependent child.

Child tax credit: This is one of easiest tax breaks. If you have a dependent child younger than 17, you can claim this $1,000 tax credit. That's one grand per kid. And it's a credit, meaning that it's a dollar-for-dollar reduction of any tax you owe. Some parents also may be able to claim the additional child tax credit, which could net them a refund.

Adoption costs: Adding to your family via adoption is time-consuming and expensive. Mostly expensive. But the adoption tax credit can help cover some of those costs.

Child care expenses: Parents have a couple of tax-advantaged ways to help pay for child care costs. If their employers offer a child care flexible spending account, workers can put in up to $5,000 a year to help pay for the kids' care.

There's also the child and dependent care credit. When you pay someone to look after your kids who are age 12 or younger while you work or look for a job, you can claim a portion of those costs, based on your income and the number of youngsters being watched, as a credit.

And you can count summer day camp costs when you figure your dependent care credit.

Dad = priceless: Every year there's a calculation of what a mom's usual household duties would net if she were paid for the tasks. A lot of mothers balk at not only the figures, but also the exercise itself.

Well, here's a chance to give equal treatment to dads.

Insure.com has a Father's Day Index and this year, reports Investopedia, dear old dad's household worth is up. A father's helping hands around the home are worth $23,344 a year, up from last year's $20,248.

The increase is primarily thanks to higher mean hourly wages, per Bureau of Labor Statistics data, for drivers, teachers, coaches and plumbers.

But despite our penchant to quantify everything, we all know that our parents' love and care and support are priceless.

Be sure you let your dad know that every chance you get.

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June 15 tax deadlines bumped this year to June 17

2013-06-15T00:20:26-05:00

June 15 is a big tax day.

It's normally the due date for the year's second estimated tax payment. It's also the filing deadline for taxpayers abroad, be they private citizens or members of the U.S. military.

But when June 15 falls on a weekend, like today, then the deadline is pushed to the next business day. That means these tax tasks must be taken care of no later than Monday, June 17.

I blogged last week about estimated taxes, so today's post focuses on the tax responsibilities of taxpayers living outside U.S. borders.

Two more months to file: The Internal Revenue Service automatically gives these folks two extra months, from April 15 to June 15, to file their returns.

You may have read on the IRS website that qualifying taxpayers get these two added months to "file your return and pay any federal income tax that is due."

But the IRS also notes on another Web page that "if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid." The regular due date is, of course, the dreaded April 15.

The agency also reiterates the interest assessment on unpaid taxes between April 15 and June 15 (or June 17 in 2013) in the When to File and Pay section of Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.

The good news, though, is that you won't face penalty charges for not filing as long as you get your 1040 in or postmarked by the June deadline.

To make sure that the IRS doesn't charge you, attach a statement to your return explaining which of the two situations -- living and working abroad or posted by the military to overseas duty -- qualifies you for the extension.

And if you need even more time to file, submit a regular request for an extension, Form 4868.

If you haven't yet paid the tax you owe, be sure to do so with this request to avoid the failure to pay penalty.

Last week at my other tax blog: A look at mid-year tax deadlines was one of the topics last week at my other tax blog.

June is busy, busy under normal tax circumstances, but it is jam packed this year thanks to the added furlough day thanks to sequestration.

It's also busy for folks in Ardmore, Pa., just outside Philadelphia, where the Merion Golf Club is hosting the U.S. Open.

A lot of the club's neighboring homeowners are renting their residences to folks who want to see Tiger and Phil and Sergio and Rory play.

As long as the Pennsylvanians (or any homeowners) don't rent their homes for more than 14 days during the tax year, the short-term rent money they collect is tax-free.

You can find my other tax blog thoughts at Bankrate Taxes Blog on most Tuesdays and Thursdays. If you happen to miss my posts over there during the week, you can find a summary (and links) here the following weekend.

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Happy Flag Day 2013!

2013-06-14T13:15:40-05:00

It's Flag Day. Are you flying the Stars and Stripes?

Americans are natural flag wavers, both figuratively and literally. So the idea of Flag Day was welcomed back in 1885 when Wisconsin teacher Bernard J. Cigrand asked his students to write essays on the U.S. flag and its significance.

The assignment fell on the anniversary of the Continental Congress's vote in 1777 to adopt the Stars and Stripes.

It became an official national holiday in 1949 when President Harry Truman signed legislation designating each June 14 as Flag Day.

After the terrorist attacks of 9-11, U.S. flags became regular fixtures at millions of homes and businesses.

Although the flag-waving ardor has waned a bit in recent years, the Flag Manufacturers Association of America says that almost $303 million in flags, banners and similar national emblems by U.S. manufacturers were produced in 2012.

At last count, 14 states encourage the purchase of American flags by exempting them, as well as their states' flags, from sales tax.

Some states go even further. Maryland, for example, also makes POW/MIA flags tax free.

And Scott Huler says Flag Day is the perfect time to also think about taxes. Huler explains in his TEDx talk why taxes are patriotic and are, in fact, the very lifeblood of what the flag symbolizes.

I have a very personal connection to Flag Day. It's my late brother's birthday.

As I noted in my very first Flag Day post on the ol' blog back on June 14, 2006, when he was a small child, Ben Allen thought the flags were put out for him.

We let him keep thinking that.

And in my heart, they are still out there flying for you today, little Bro.

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Divorce tax considerations prompted by Rupert and Wendi Murdoch's impending marital split

2013-06-14T11:49:28-05:00

Yet another high-profile marriage apparently is about to end in divorce. Media mogul Rupert Murdoch has filed for divorce from Wendi Deng, his third wife of 14 years.

The 82-year-old head of News Corporation and his 44-year-old wife are the parents of two young daughters.

Expect the breakup to be messy. Murdoch is worth a reported $11.2 billion that comes from News Corp, corporate parent of, to name a few, Fox News, various entertainment TV outlets, a film studio and a publishing empire that counts the Wall Street Journal among its holdings.

When Murdoch and his second wife divorced in 1998, it cost him $1.7 billion, including $110 million in cash.

Both Mr. and Mrs. M have high powered lawyers and forensic accountants to guide them through the break-up of the marriage and assets.

We regular folks, however, usually can't afford such specialized help. That means we ourselves need to pay a bit more attention to the possible financial and tax consequences when a marriage can't be saved.

And everyone who goes through a divorce, regardless of how rich or poor, must pay attention to the same rules when it comes to federal taxes.

I hope your relationship is strong and happy and you never have to think about this, but just in case, here are some divorce tax tips.

Timing: Your tax filing status is determined by your marital status on the last day of the tax year. If you are still legally married on Dec. 31, then the Internal Revenue Service considers you to be married for that tax year.

As such you have two tax filing choices, married filing separately or married filing jointly. If your split is mutual and amicable, it might be worth continuing to file jointly. This filing status typically provides better tax breaks and rates that each partner filing a separate return.

Remember, however, that when you file a joint return, both partners are jointly and severally liable for any taxes owed. That means that if Uncle Sam determines there's a problem with the return the husband and wife signed, even if it's because of the acts of one spouse, both husband and wife are liable for the bill and the IRS can come after each or either for the money.

So if finances are part of the reason you're splitting, you might want to the file a separate return. It might cost you a little more in taxes right now, but it could prevent tax troubles connected to your ex down the road.

When you file separately and minor children are involved, the spouse with whom the kids lived for more than half the year can claim them as dependents.

And if you and your soon-to-be-ex spouse lived apart from each other for the last six months of the year, even though you are technically married you may be able to file as head of household if you've been taking care of the kids during the split.

Head of household is more tax beneficial than filing separately. You may be able to claim the earned income credit and certain other credits and your standard deduction will be higher. But you must meet certain requirements, so check with your tax adviser about the rules.

Post-divorce status options: The end of year determination also applies when your divorce is final. If your divorce decree is issued on Dec. 31, then you are a solo filer for that full year.

If you don't have kids or your children are no longer your dependents, then you'll file as a single taxpayer.

But if you have dependent children, then you can use the previously noted more tax advantageous head of household filing status.

Generally, divorced parent who has physical custody of the kids gets to claim them and any associated child tax breaks. However, the custodial parent can allow the other parent to claim the kids. In that case, Form 8332 must be filed.

Alimony, child support and tax deductions: Alimony and child support are part of most divorces. And each is treated differently for federal tax purposes.

Alimony has tax consequences for both the payer and the recipient.

If you make support payments to your ex, you can claim that amount as an above-the-line deduction. Similarly, the ex receiving the alimony must count it as taxable income.

Child support, however, is tax neutral. It is neither deductible to the payer nor taxable to the recipient.

So pay close attention to how financial arrangements are structured in your divorce settlement.

Other asset tax implications: Careful consideration of dividing the marital assets also is required to avoid future tax problems.

Take the family home. A residence is usually the most valuable asset owned by a couple. In many cases, the ex-wife gets the property because she has custody of the kids and to avoid the further family disruption of a move away from friends and school.

But once she becomes sole owner of the property, her tax break when she does finally sell the house is dramatically reduced. A single homeowner can only exclude a maximum of $250,000 in home sale profit from taxation. If the home was sold before the divorce, the couple could have excluded $500,000 and split the money in the divorce.

Also consider the tax implications when splitting up investment accounts.

Say the couple has a tax-deferred retirement account and a regular account, both worth $100,000 each. She takes the retirement money and he keeps the regular account. But when she starts taking money from the retirement account, she will owe taxes whereas the regular account he took already has been paying taxes through the years so his tax bill upon cashing it out could be less. The bottom line is to pay close attention to an asset's eventual tax costs when deciding who gets what.

These are just a few highlights of the tax issues facing divorcing couples. So in addition to hiring a good tax attorney, also consider hiring an accountant or financial adviser with experience in divorce cases.

It might cost a bit more up front, but could save you valuable dollars once your divorce decree is final.

Photo of the Murdochs by david_shankbone via photopin cc

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Divorce tax tips from Tiger Woods
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IRS second furlough day is Friday, June 14, closing tax agency offices nationwide and leaving e-filing offline

2013-06-13T14:41:49-05:00

If you're planning on efiling a tax document, you might want to get to it today.

The Internal Revenue Service is facing another furlough day tomorrow, Friday, June 14. All IRS employees will stay at home that day without pay in order for the agency to meet sequestration budget cuts.

Yep, for the second time this year, the IRS is closing all its doors nationwide.

That includes not only IRS offices, but also the agency's nearly 400 taxpayer assistance centers across the country as well as Taxpayer Advocate Service facilities.

No tax returns will be processed and no compliance-related activities will take place.

And without staff on hand the IRS' toll-free hotlines also will go unanswered.

Online tax options affected: If you're thinking no big deal, I'll just handle everything online, you might need to think again.

Businesses that must make employment and excise tax deposits can continue to do so because the Electronic Federal Tax Payment System (EFTPS) through which these payments are made will be operational on June 14.

You'll also be able to go to IRS.gov and order a tax transcript and use the online look-up tool if you need to repay the first-time home-buyer credit.

And the site's withholding calculator, earned income tax credit (EITC) eligibility tool and Interactive Tax Assistant will be working while the agency's employees are at home on Friday.
But the online preparer tax identification number (PTIN) system for tax professionals will be shut down.

And if you want to check the status of your refund via the IRS' online Where's My Refund? tracking tool or make arrangements to pay a tax bill online using the agency's Online Payment Agreement, you're out of luck.

Efilers also will be locked out on Friday.

The IRS says the furlough shutdown means that its Modernized eFile (MeF) system will not be available from 10 p.m. Eastern Time today, June 13, until 9 a.m. on Saturday, June 15.

To ensure that a return you efile today is accepted before the furlough day begins, the IRS says you need to get it to them by 8 p.m. ET. The deadline for getting acknowledgement of electronically transmitted documents is 10 p.m. ET today.

Since time's ticking away, I'll let you go now and get to work before the IRS clocks out for furlough day two.

And to help you be ready for the remaining furlough days -- unless Congress acts (yeah, right) -- mark July 5, July 22 and Aug. 30 on your calendars.

Closed sign photo by Alan Cleaver via Flicker

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IRS furloughs begin

Sequestration's blunt and indiscriminate budget cuts

How would your state fare under sequestration?

Where to mail your estimated tax 1040-ES form

2013-06-12T16:43:05-05:00

Has your summer gotten off to a good start? Great!

But if you must make estimated tax payments, you need to take a break from your fun in the sun and send in your second Form 1040-ES for tax year 2013.

It's usually due on June 15. But since that's a Saturday this year, you get a couple more days to make the payment.

Your second estimated tax payment for 2013 is due Monday, June 17. And that reminder is this week's Weekly Tax Tip.

Click image to access the PDF version of Form 1040-ES, including all vouchers and instructions.

You can pay estimated taxes via credit or debit card, electronic funds withdrawal or using the IRS' Electronic Federal Tax Payment System (EFTPS).

I'm an EFTPs fan and just finished setting up this and the remained of 2013's estimated payments via the online service. Now I just have to make sure I have the money in my account before Uncle Sam electronically collects it!

If you prefer, however, to write a paper check or money order and mail it to the Internal Revenue Service, make sure you send it to the correct processing office. It might not be the same one to which you snail mailed your annual 1040.

Where to mail your 1040-ES voucher and payment

If you live in … Send your 1040-ES voucher and payment to

Florida, Louisiana, Mississippi, Texas Internal Revenue Service
P.O. Box 1300
Charlotte, NC 28201-1300

Alaska, Arizona, California, Colorado, Hawaii, Idaho, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming

Internal Revenue Service
P.O. Box 510000
San Francisco, CA 94151-5100

Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota, Wisconsin

Internal Revenue Service
P.O. Box 802502
Cincinnati, OH 45280-2502

Alabama, Georgia, Kentucky, Missouri, New Jersey, North Carolina, South Carolina, Tennessee, Virginia

Internal Revenue Service
P.O. Box 931100
Louisville, KY 40293-1100

Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New York, Pennsylvania, Rhode Island, Vermont, West Virginia

Internal Revenue Service
P.O. Box 37007
Hartford, CT 06176-7007

A foreign country, American Samoa or Puerto Rico, or use an APO or FPO address, or are a dual-status alien or nonpermanent resident of Guam or the U.S. Virgin Islands*

Internal Revenue Service
P.O. Box 1300
Charlotte, NC 28201-1300
USA

Guam bona fide residents** Department of Revenue and Taxation
Government of Guam
P.O. Box 23607
GMF, GU 96921

U.S. Virgin Islands bona fide residents**

Virgin Islands Bureau of Internal Revenue
6115 Estate Smith Bay
Suite 225
St. Thomas, VI 00802

*The Charlotte mailing address also is used by taxpayers who are excluding income under IRC 933 or who file Form 2555, 2555-EZ or 4563.
**Bona fide residents must prepare separate vouchers for estimated tax income tax self-employment tax payments. Send the income tax vouchers to the address for bona fide residents and the self-employment tax vouchers to the address for non bona-fide residents. More information on bona fide resident rules can be found in Chapter 1 of IRS Publication 570, Tax Guide for Individuals with Income From U.S. Possessions.
If you do use the U.S. Postal Service to send in your 1040-ES, remember to get it in the outgoing box in time for it to postmarked June 17. The same timely filed postmark standard that IRS accepts for your annual return filing is used for estimated tax payments, too.

And make your check out to the U.S. Treasury, not to the IRS.

Since most of us already figured out how much estimated tax we need to pay each quarter when we filed our first 1040-ES back in April, this June payment shouldn't take too long.

Remember, the sooner you take care of this tax task, the sooner you'll get back to enjoying your summer break.

You also might find these items of interest:

Open an EFTPS account to pay your taxes

Don't forget your state taxes

Made a filing mistake? Make amends

IRS chief Daniel Werfel gets new title

2013-06-12T12:26:27-05:00

If you're planning on dropping Daniel Werfel a note about the Internal Revenue Services' recent troubles, be sure to address him correctly.

Werfel is no longer IRS Acting Commissioner.

No, he hasn't been fired or suspended. He's got a new title.

Werfel is now IRS Principal Deputy Commissioner and Deputy Commissioner for Services and Enforcement.

But regardless of what you call him, IRS employees will still call him boss. Despite the title change, Werfel will continue to run the agency.
Ch-ch-changes: Werfel's new, longer official job designation was bestowed by Treasury Secretary Jacob Lew, who sent Senate and House tax-writing committee leaders a letter explaining the change.
The new moniker isn't just cosmetic. It's mandated by the Federal Vacancies Reform Act of 1998, which details how certain presidentially appointed, Senate-confirmed offices may be filled.

IRS commissioner is one of the positions under the Act's purview. It states that an acting commissioner can serve for only 210 days after the vacancy is created.

Former Commissioner Doug Shulman's last day in his IRS office was Nov. 9, 2012. The 210th day since then was Monday, June 10.

So Lew got proactive and made Werfel's job change effective June 7.

"Mr. Werfel will continue to lead the IRS," Lew wrote to Democratic and Republican leaders on the Senate Finance and House Ways and Means committees. "He will serve as the senior most IRS official and, pursuant to existing IRS Delegation Orders, will have the authority to perform all the delegable duties and responsibilities of the Commissioner of Internal Revenue."

When President Obama nominates a new IRS Commissioner, Werfel will again become the agency's Acting Commissioner until the new candidate is confirmed.

Please update your Outlook address book and/or Rolodex accordingly.

You also might find these items of interest:

New IRS Acting Commissioner addresses his troops

Conservative groups sue IRS for Tea Party targeting

2 IRS employees placed on leave for roles in costly conference

If you live in …	Send your 1040-ES voucher and payment to
Florida, Louisiana, Mississippi, Texas	Internal Revenue Service P.O. Box 1300 Charlotte, NC 28201-1300
Alaska, Arizona, California, Colorado, Hawaii, Idaho, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming	Internal Revenue Service P.O. Box 510000 San Francisco, CA 94151-5100
Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota, Wisconsin	Internal Revenue Service P.O. Box 802502 Cincinnati, OH 45280-2502
Alabama, Georgia, Kentucky, Missouri, New Jersey, North Carolina, South Carolina, Tennessee, Virginia	Internal Revenue Service P.O. Box 931100 Louisville, KY 40293-1100
Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New York, Pennsylvania, Rhode Island, Vermont, West Virginia	Internal Revenue Service P.O. Box 37007 Hartford, CT 06176-7007
A foreign country, American Samoa or Puerto Rico, or use an APO or FPO address, or are a dual-status alien or nonpermanent resident of Guam or the U.S. Virgin Islands*	Internal Revenue Service P.O. Box 1300 Charlotte, NC 28201-1300 USA
Guam bona fide residents**	Department of Revenue and Taxation Government of Guam P.O. Box 23607 GMF, GU 96921
U.S. Virgin Islands bona fide residents**	Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. Thomas, VI 00802