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IRS Establishes Balanced Measurement System 

An integral part of the overall IRS modernization program is the establishment of balanced performance measures that support and reinforce achievement for the IRS' restated mission and strategic goals. For a complete discussion of establishing a performance measurement system, see How will we measure our work? under Modernizing America's Tax Agency.

The IRS has issued a regulation, Establishment of a Balanced Measurement System, that requires a balanced system to measure organizational performance. The regulation establishes requirements that all employees be evaluated on whether they provide fair and equitable treatment to taxpayers and bars the use of records of tax enforcement results to evaluate or impose goals for IRS employees.

IRS Policy Statement P-1-20 previously prohibited the use of records of tax enforcement results to evaluate employees or to impose or suggest production quotas or goals. The balanced measurement regulation replaces Policy Statement P-1-20 as the regulation strengthens and clarifies the prohibition of the use of records of tax enforcement results; therefore, Policy Statement P-1-20 is no longer needed and has been rescinded.

The new regulation requires employees to make decisions solely on the correct application of the law to the facts of each case and the exercise of reasonable judgment in the light of the circumstances of the taxpayer. The new system of balanced performance measures is derived from IRS' three strategic goals: Service to Each Taxpayer; Service to all Taxpayers; and Productivity Through a Quality Work Environment. The IRS is developing training to provide managers and employees with information on the content and application of the balanced measurement regulation.

02-Aug-1999

Caution - Form 2290 Instructions (Rev. July 1999)
Contain an Incorrect Mailing Address

If you downloaded the July 1999 version of the Instructions for Form 2290 before June 25, 1999, you should be aware that the product has an incorrect address on page 2, under How To Make Your Payment. The address in the second bulleted item should be:

Internal Revenue Service
P.O. Box 6229
Chicago, IL. 60680-6229

The corrected version of the 1999 Instructions for Form 2290 is available here.

22-Jul-1999

Open season for Membership in IRS Advisory Council (IRSAC)

IRS is requesting nominations for members in the IRS Advisory Council. Nominations will be accepted for current vacancies and vacancies that will or may occur during the next 12 months. Interested persons may nominate themselves and/or one or more qualified persons for membership on the IRS Advisory Council. All applicants must complete an Advisory Council - Membership Application and Tax Check Waiver. In addition, FBI and practitioner (if applicable) checks are required of all applications. Please refer to the Advisory Council 1999 Member Recruitment - Fact Sheet for specific details about the nomination and selection process. The deadline for submitting applications is Tuesday, August 31, 1999.

The IRS Advisory Council provides an organized forum for discussion of relevant tax administration issues between IRS officials and representatives of the public. Through the years, IRS Advisory Council has focused on broad tax administration policy matters. Various groups have suggested operational improvements, offered constructive observations about IRS' current or proposed policies, programs, and procedures, and advised the Commissioner of Internal Revenue on particular issues having substantive effect on Federal Tax Administration. It is important that IRS Advisory Council membership continue to represent the range and make-up of broad and diverse taxpayer and key stakeholder base.

For additional information, please contact Lorenza Wilds at (202) 622-6440, or e-mail at Public-Liaison@m1.irs.gov.

401(k) Fact:

The average 401K account balances at the end of 1998 was $47,000 per participant, up 26% from 1996, according to the ICI and the Employee Benefit Research Institute. On average, 78% of eligible employees will participate in a 401(k) plan if one is made available, with the number of participants growing from 19.5 million in 1990 to 53.2 million in 2000. Some of the increase in participation rates is due to the introduction of "negative election," which allows an employer to automatically enroll employees into the 401(k) when they meet the plan's eligibility requirements. The negative election deferral rate and investment(s) must be defined ahead of time, and the employee must be immediately notified of his or her participation status. Target Laboratories (www.targetlab.com) knows from first-hand experience how successful negative elections can be. Automatic enrollment programs are sanctioned by the IRS under ERISA as long as the employee has ample ability to cease enrollment at will.

21-Jul-1999

Small Business Talk is Here!

Publication 1853, Small Business Talk, is available! The publication was recently revised and redesigned to provide our small business/self-employed taxpayers with the latest information on programs, products, and services specifically tailored to their needs. In addition, the new version of Pub. 1853, includes information about the ways in which IRS is changing and how these changes will help us to better serve small business taxpayers.

Publication 1853 (Rev. 5-99), Catalog Number 21523G, can be ordered by calling 1-800-829-3676, or download it here.

14-Jul-1999

Electronic Funds Transfer Temporary Waiver of
Failure to Deposit Penalty For Certain Taxpayers

In News Release IR-1999-27, the IRS announced that beginning July 1, 1999, certain taxpayers currently required to deposit federal taxes using the Electronic Federal Tax Payment System (EFTPS) will be eligible for continued penalty waiver until December 31, 1999. Notice 99-20 provides guidance regarding application of the failure to deposit penalty to taxpayers currently required to deposit by electronic funds transfer. It also provides guidance on the waiver of the failure to deposit penalties for taxpayers whose deposit obligations are $200,000 or less in 1998.

18-Jun-1999

Small Business Workshop Workbook

Publication 1066, Small Business Workshop Workbook, is now in print and available at the Area Distribution Centers. The publication was developed for use in the IRS' Small Business Workshops (SBW). About 1,500 SBWs are presented by our districts annually. The workshops are targeted to taxpayers that are interested in starting a business or that recently went into business.

The workbook contains general information about different types of business organizations, recordkeeping requirements, and business tax returns. Publication 1066 includes an introduction and four basic lessons:

The publication is also available in electronic format.

08-Jun-1999

New Version of EFTPS Software

We would like to remind Batch Filers and taxpayers that there are new versions of the EFTPS software programs available for your use from Anexsys (formerly First Chicago) for the northern portion of the country, and Bank of America (formerly NationsBank) for the southern portion of the country.

The most recent versions of the software have been upgraded to comply with Y2K requirements. The newest versions of the software are as follows:

If you wish to receive a free copy of a new version, please contact Customer Service at 1-800-555-4477 (Bank of America) or 1-800-945-8400 (Anexsys).

Please note that installation of the new version insures that your EFTPS software is Y2K compliant, but we cannot guarantee that your computer and any peripherals are Y2K compliant, and we make no representation or warranty therewith.

If you have any questions or problems, please call the toll-free Customer Service Center. Thank you for using EFTPS ~ the easiest way to make your Federal tax payments.

06-May-1999

The IRS and Small Business Administration (SBA)
Are Teaming Up to Help Small Businesses

Are you thinking about going into business or have you already taken the plunge? Do you need help? The SBA and the IRS are teaming up to offer small businesses educational tax assistance at four of the SBA's Business Information Centers (BICs) in Atlanta, Boston, Chicago and Los Angeles. For years, the BICs have been helping entrepreneurs start up and expand their businesses. Now thanks to the IRS/BIC partnership, people can also learn more about their business tax responsibilities from IRS educational specialists at the four BIC locations.

This test program will place IRS tax educational specialists at the four BICs for eight hours each week. If successful, the educational assistance program may later be offered at more of the 57 BIC locations. Although the IRS tax specialists at the four BICs will not be able to give assistance with individual business tax liabilities, they will be able to provide many other services including:

Below, are the BIC locations that are offering direct IRS assistance. If you would like more information about the educational services and the hours they are provided please call the IRS at the following number(s). 


Atlanta      270 Peachtree Street, Suite 140, Atlanta, GA 30303        Call IRS at (404) 338-8670  
Boston       10 Causeway Street, Room 265, Boston, MA                  Call IRS at (617) 565-4325  
Chicago      500 West Madison St., Suite 1250, Chicago, IL 60661-2511  Call IRS at (312) 886-7802  
Los Angeles  600 Wilshire Blvd, L-100, Los Angeles, CA. 90010          Call IRS at (213) 894-4574

10-Apr-1999

Electronic Funds Transfer
Temporary Waiver of Failure to Deposit
Penalty For Certain Taxpayers

In News Release IR-1999-27, the IRS announced that beginning July 1, 1999, certain taxpayers currently required to deposit federal taxes using the Electronic Federal Tax Payment System (EFTPS) will be eligible for continued penalty waiver until December 31, 1999. Notice 99-20 provides guidance regarding application of the failure to deposit penalty to taxpayers currently required to deposit by electronic funds transfer.

Additional non-profit websites that include relevant unbiased information about 401k plans include: www.self-service-401k.com. 

08-Apr-1999

IRS, SBA Join Forces to Help Small Businesses

The IRS and Small Business Administration (SBA) have teamed up on several new initiatives designed to help small businesses handle tax issues. The new programs reflect a growing partnership between the two agencies aimed at providing timely, convenient tax information for the small business community. Information Release 1999-37 provides more details on the programs announced by IRS Commissioner Charles Rossotti and SBA Administrator Aida Alvarez at an April 8 press conference.

22-Mar-1999

Relief for Small Business EFTPS Depositors

Responding to small business concerns about mandatory participation in the Electronic Federal Tax Payment System (EFTPS), Commissioner of Internal Revenue Charles Rossotti has announced changes in the administration of the electronic funds transfer program. Beginning in January 1, 2000 the threshold for mandatory EFTPS participation will be raised to deposits over $200,000. During the interim period, July 1 through December 31, 1999, IRS will continue to waive penalties for businesses currently required to use EFTPS that made Federal tax deposits of $200,000 or less in calendar year 1998.

The proposed changes should significantly reduce regulatory burden to small businesses. The new threshold eliminates mandatory use of EFTPS by 91 per cent of all businesses beginning January 1, 2000. Detailed highlights of the provisions in the proposed regulations can be found in the Electronic Federal Tax Payment System (EFTPS) Questions and Answers and news release IR-1999-27 on the IRS Newsstand. The relief measures will give undecided businesses an opportunity to find out more about the business benefits of EFTPS. More than $2 trillion has been collected to date from more than 2 million users, making EFTPS one of the largest and most successful electronic payment collection systems in existence.

For more information about EFTPS, visit the IRS EFTPS web page. You are also invited to submit comments on the proposed regulations via the Internet by selecting the Tax Regulations option.

 

10-Mar-1999

IRS Moves to Revise Third Party Notices

The IRS is seeking comments from small businesses, tax practitioners, and other interested persons on a letter advising taxpayers that the Service may contact third parties to gather information in the course of handling their cases. In last year's IRS Restructuring and Reform Act, Congress required the agency to provide taxpayers reasonable notice before contacting outside parties for information in connection with the determination of tax liability, including audits or collection actions. The contacts are generally used as a last resort to resolve unanswered questions about the assets, address, or tax liability of the taxpayer. The IRS began mailing the letter to taxpayers after January 18, 1999. RRP

Your comments are welcomed on Letter 3164, Third Party Notice, and Letter 3173, Third Party Contacts. Letter 3173 is a follow-up letter that IRS periodically sends to taxpayers to notify them of individuals the Service has contacted. For more information, see News Release IR-1999-19 on the IRS News Releases and Fact Sheets page of the IRS Newsstand.

You may fax your comments to the Office of Public Liaison and Small Business Affairs at 202-622-8345.

  For more information/comments: comments@401ksoftware.com