BUSINESS TAXES
Firms get guidance from IRS on the expanded loss carry back rules. A new law allows businesses of all sizes to carry back a 2008 or 2009 NOL for up to five years. Those that have average gross receipts of $15 million or less can elect to do so for losses in both years. The election for either year must be filed by the due date of the firm’s 2009 return, plus extensions. Any loss carried back to the fifth year can offset only 50% of that year’s income. The election can be made on Form 1139 by corporations and on Form 1045 by self-employed individuals.
Information return filers can now enter truncated Social Security numbers on forms sent to taxpayers, the Revenue Service says. Payers of interest, dividends and the like can mask all but the last four digits of taxpayer ID numbers on 1098s, 1099s and 5498s to help thwart identity theft. The IRS already blocks out portions of Social Security numbers on documents that publicly record or release tax liens. Of course, the payee’s full tax ID number must still be listed on the copy that’s filed with IRS. Otherwise, the IRS couldn’t match the income with the taxpayer’s 1040.
Firms get guidance from IRS on the expanded loss carry back rules. A new law allows businesses of all sizes to carry back a 2008 or 2009 NOL for up to five years. Those that have average gross receipts of $15 million or less can elect to do so for losses in both years. The election for either year must be filed by the due date of the firm’s 2009 return, plus extensions. Any loss carried back to the fifth year can offset only 50% of that year’s income. The election can be made on Form 1139 by corporations and on Form 1045 by self-employed individuals.
Information return filers can now enter truncated Social Security numbers on forms sent to taxpayers, the Revenue Service says. Payers of interest, dividends and the like can mask all but the last four digits of taxpayer ID numbers on 1098s, 1099s and 5498s to help thwart identity theft. The IRS already blocks out portions of Social Security numbers on documents that publicly record or release tax liens. Of course, the payee’s full tax ID number must still be listed on the copy that’s filed with IRS. Otherwise, the IRS couldn’t match the income with the taxpayer’s 1040.
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