IRS Announces Withholding Adjustment Option for Pension Plans and Provides Taxpayer Education
WASHINGTON — As part of a wider outreach effort to educate taxpayers about the benefits they will receive under the American Recovery and Reinvestment Act, the Internal Revenue Service today released new withholding adjustment procedures for pension plans.
In February, the IRS issued revised withholding tables incorporating the Making Work Pay Tax Credit, one of the key provisions of the American Recovery and Reinvestment Act. That change resulted in more take home pay for more than 120 million American households and provided an immediate economic stimulus. The new procedure for pensions will make withholding more accurate for pension recipients.
While the newly announced procedures apply only to pension payments, the IRS is gearing up for a wider outreach campaign to educate pensioners and other taxpayers about the withholding tables and Recovery payments. The IRS will work with partner groups to provide taxpayers information to make sure they have the appropriate withholding for their situation. The IRS will also work on developing a variety of information products, including brochures, video and audio material to help educate taxpayers.
The change announced today will help some pensioners avoid a smaller refund next spring or even a balance due in limited situations. A wide variety of factors, such as outside jobs and other earned income, can affect how much, if any, withholding is needed by people receiving a pension to satisfy their annual tax liability. The optional adjustment procedure which may be used by those paying pensions is available in Notice 1036-P, Additional Withholding for Pensions for 2009. The on-line version of Publication 15-T, New Wage Withholding and Advance Earned Income Credit Payment Tables, will be updated and available next week.
Pension payors are not required to use this new procedure and may continue to use only the February 2009 withholding tables. For plans that adopt the new procedure, withholding on pension payments will be automatically adjusted with no action needed by pensioners. The IRS is also encouraging pension payors who choose to implement the new withholding adjustment procedures to contact retirees who previously submitted a Form W-4P, Withholding Certificate for Pension or Annuity Payments, requesting additional withholding after the February withholding tables were issued.
Those who should pay particular attention to their withholding include married couples with two incomes, individuals with multiple jobs, dependents, some Social Security recipients who work and workers who do not have valid Social Security Numbers. Depending on their personal situation, some people could have less withheld from their paychecks than they need or want. People who believe their current withholding is not appropriate for their personal situation can perform a quick check by using the IRS withholding calculator on IRS.gov. Any necessary adjustments can be made by filing a revised Form W-4, Employee's Withholding Allowance Certificate, with their employer.
For more information visit IRS.gov. Taxpayers and payors can download forms and publications from IRS.gov or request a free copy by calling toll free 1-800-TAX-FORM (1-800-829-3676).
I hope this information is helpful.
Please visit our website at http://tomrodgers723.community.officelive.com
Tom Rodgers
The Information below may be helpful to small businesses concerning Cobra Insurance.Please view our website also at http://tomrodgers723.community.officelive.com
Thanks Tom Rodgers
February 26, 2009 Issue Number:
IR-2009-015 Inside This Issue
IRS Releases Information to Help Employers Claim COBRA Medical Coverage Credit on Payroll Tax Form
WASHINGTON — The Internal Revenue Service today released new detailed information that will help employers claim credit for the COBRA medical premiums they pay for their former employees.
The IRS unveiled new information on this Web site, IRS.gov, that includes an extensive set of questions and answers for employers. In addition, the Web site contains a revised version of the quarterly payroll tax return that employers will use to claim credit for the COBRA medical premiums they pay for their former employees.
Form 941, Employer’s Quarterly Federal Tax Return, will also be sent to about 2 million employers in mid-March. The form is used to claim the new COBRA premium assistance payments credit, beginning with the first quarter of 2009.
“This is the first step in our effort to provide employers with information on this important health benefit for people who have lost their jobs,” said IRS Commissioner Doug Shulman. “We will continue our work in the weeks ahead to help employers implement this crucial change for the nation’s unemployed.”
The American Recovery and Reinvestment Act of 2009, which became law last week, includes changes to the health benefit provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly referred to as COBRA. The new law will affect former employees and their families, employers and others involved in providing COBRA coverage.
Under the new law, eligible former employees, enrolled in their employer’s health plan at the time they lost their jobs, are required to pay only 35 percent of the cost of COBRA coverage. Employers must treat the 35 percent payment by eligible former employees as full payment, but the employers are entitled to a credit for the other 65 percent of the COBRA cost on their payroll tax return.
Employers must maintain supporting documentation for the credit claimed. This includes:
COBRA provides certain former employees, retirees, spouses, former spouses and dependent children the right to temporary continuation of health coverage at group rates. COBRA generally covers health plans maintained by private-sector employers with 20 or more full and part-time employees. It also covers employee organizations or federal, state or local governments. It does not apply to churches and certain religious organizations. The new COBRA subsidy provisions also apply to insurers required to offer continuation coverage under state law similar to the federal COBRA.
More information about COBRA payments and the new law is available on www.dol.gov.
There are so many Tax Preparers in Georgia and Alabama within a 90 mile radius of Columbus Georgia, Cusseta Georgia, and Phenix City Alabama that are not doing due diligence and are ripping off there clients as well as the United States Treasury(IRS).
Alot of these preparers are even telling there clients that the stimulus checks they received in 2008 is taxable income.
IRS Commissioner Shulman Please order a Due Diligence audit and Investigate this area you will be suprised at the number of Fraudelent Tax Returns being filed in this area.
Please visit my website: http://TomRodgers723.community.officelive.com
"Many people took out loans they were never going to be able to afford,never! That means somebody knew from day one they were never going tobe able to pay back the loans." The bankers approved these loans and used the money to pay themselves bonuses and payed our government representatives to look the other way…that’s where we are…any suggestions for getting us out of the mess are welcome…but if you just want to play the blame game…where does that get us?
Read what was spammed on the comments section of my blog:
The people that bend the rules GET PAID!
You too can bend the rules by printing out fake paystubs w-2 w2 1099 forms usinghttp://www.PROOFOFEMPLOYMENT.com
Buy a home, car or get a huge irs tax refund just for being you! Do what you have to do to get yours! EVERYONE ELSE DID!!
http://www.FAKEPAYCHECKSTUBS.com
Print out Fake Employment and Fake Income, Wages, 1099, w2, w-2, using your home computer printer!
Oy vey!!
Georges Marciano who has been begging the IRS to audit him for over three years states that he owes IRS in the millions .....yes I said millions. I have emailed the IRS, we have sent letters. He has received a refund check from them and at the same time they sent him a letter stating he never filed? Georges has sent all the documents to the IRS, FBI, Los Angeles Sherriffs department, Beverly Hills police department and yet nothing....they have not even assigned anyone to the case....
http://irstaxneverfiled.wordpress.com/ on this site it shows the absolutely rediculous documents from the IRS . The question is why do they make such a big deal over Daschle and Geithner and their taxes and yet the Georges Marciano who actually wants to pay his taxes they are ignoring?
Stephen Views the News 12/26/08
http://stephenviewsthenews.blogspot.com/
If I were Santa Claus I would have delivered the following stocking stuffers:
* A brain for Sen. John Ensign (R-NV), chairman of the National Republican Senatorial Committee. While appearing on Face the Nation he said of the economic meltdown: "Unfortunately, it was allowed to be portrayed that this was a result of deregulation, when in fact it was a result of overregulation."
* A jar of jalapeño Vaseline for the SEC employees who watched porn rather than "protecting investors and maintaining fair, orderly, and efficient markets," as is their mission. * A rasher of humility for Stephen Views the News to embrace reader comments such as, “You sir are masterfully demonstrating your own ignorance.”
* An imported deluxe kerosene heater for Wal-Mart’s heart. On Tuesday the company said it would pay between $352 million and $640 million to settle lawsuits across the country claiming that it forced employees to work off the clock.
* The 2009 Sarah Palin Calendar for John McCain, even though he is setting land speed records running from his former running mate.
* A shiny house-arrest ankle bracelet for Illinois Governor Rod Blagojevich for auctioning the senate seat vacated by Barack Obama.
* A bar of mouth soap and truck driver’s license for Mrs. Blagojevich for her picante comments recorded during a federal wiretap investigation of her husband the governor.
* A yuletide apology to truck drivers for associating them with the First Lady of Illinois.
* A basket of experience for Caroline Kennedy seeking to inherit Hillary Clinton’s senate seat in New York.
* A ride on Santa’s sleigh for the auto executives embarrassed into abandoning their private jets.
* A sleigh full of Pepcid for president-elect Barack Obama as he embarks on the journey of leading a country beset with a multitude of serious challenges.
* A duly elected Senator for the citizens of Minnesota and preferably not the candidate under federal investigation.
* A time-out for the Obama administration before deciding to commit tens of thousands of U.S. troops to Afghanistan. The complexity of that country’s politics and the corruption of its leadership demand extreme caution.
* Harvey the imaginary rabbit for Malia and Sasha Obama as they seek solitude from the harsh world of celebrity they will encounter over at least the next four years.
* Fifty billion days of homelessness on the streets of New York City for Bernard “Bernie” Madoff. He is one of the all-time goniffs (crooks) of the investment world. His soulless greed wreaked economic havoc and, in some cases destruction, on schools, charities, pension funds and so much more.
* A punch bowl of common sense for Madoff’s Ponzied investors who believed that Madoff was Santa Claus.
* A wake up call for the inhabitants of planet Earth to not be misled by low gasoline prices. Santa cannot reverse limited oil reserves or a debilitated environment that is ignored.
* A revised mission statement for the IRS whose audits of large companies declined for the third year in a row. Santa’s trust of business and government also declined for the third year in a row.
* A slightly used and toxic post-Katrina mobile home to transport departing Homeland Security chief Michael Chertoff to a lucrative book signing deal. In America incompetence has its rewards.
* A mega-warehouse for the U.S. Department of the Navy to store $7.5 billion in UNNEEDED parts. One of the factors contributing to the unnecessary purchases was “inefficiency in the Navy's inventory management.” No surprise to Santa who understands “overstocked” with a North Pole laden with unsafe toys outsourced from Asia.
* Light-blocking window drapes for American banks accepting billions of dollars of bailout money sans accountability. Santa does not blame the banks – at least on this account. He does have queries for the little elves on Ritalin running the Bush administration and running around the halls of Congress.
* A cruise on the Titanic for the American Enterprise Institute (AEI). This conservative “think” tank spawned much of the neocon nonsense and “free” market malarkey that dominated Bush administration strategy.
* A set of barbells to put more muscle into credit card reform regulations scheduled to go into effect in 2010.
* A chapel for the gay citizens that Pastor Rick Warren suddenly “loves” but is not likely to welcome to his church.
* Public financing of elections legislation to improve an electoral process that has become the antithesis of democratic principles.
* A frontal lobotomy for Rush Limbaugh for positing his conspiracy theory that the economic crisis was created by Democrats to generate a financial panic and ensure the election of Obama.
* Thorazine prescriptions for Bill O’Reilly and Karl Rove. They have suggested the conspiracy theory that journalists deliberately manufactured the financial crisis so that Obama would be elected.
* A lump of coal for the energy interests spending millions of dollars to convince the American public that there is such a thing as “clean coal.” Perhaps they can donate some of this money to residents in Tennessee to recover from the flood of sludge that broke through a dike at TVA's Kingston coal-fired plant Monday. This could prove to be an environmental disaster of very significant proportions. Al Gore’s Alliance for Climate Protection and the “Reality” coalition have a new ad about the myth of “clean coal.”
* For those that can, websites to help those in need:
~ Feeding America is a network of over 200 food banks covering all 50 states.
~ Operation USO Care Package provides care packages of needed and requested items for our troops overseas
These websites are noted in Michelle Obama’s Holiday Greetings.
* Peace, goodwill and wisdom for a world on multiple brinks.
* 2009 hugs and best wishes for the New Year to readers of Stephen Views the News.
* “I don't make jokes... I just watch the government and report the facts.”
Will Rogers (1879 – 1935) Cherokee-American cowboy, comedian, humorist, social commentator, vaudeville performer and actor.
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Green Wave Energy understands alternative energy technology will become “main stream” when
Call 949.645.1701 for information on how Green Wave Energy can help you save the planet.
Alternative EnergySource: David Apperson
url: http://veterans.barackobama.com/page/community/tag/alternative-energy
The National Enquirer has exposed a Sarah Palin scandal that, if true, threatens to derail the McCain/Palin campaign. According to the Enquirer, Palin cheated on her husband Tom with Todd’s former business partner, Brad Hanson, who at the time was a married man.
Hanson owned a snowmobile dealership with Palin’s husband Todd, who angrily dissolved the partnership after he heard about the affair, which occurred around 1996.
Hanson denies ever having an affair with the 44-year-old candidate, but his family members say otherwise
CHICAGO -- Declaring that clergy have a constitutional right to endorse political candidates from their pulpits, the socially conservative Alliance Defense Fund is recruiting several dozen pastors to do just that on Sept. 28, in defiance of Internal Revenue Service rules.
Palin's pregnant child proves abstinence education works!
If keeping our girls pregnant and our teens covered in genital warts and taking Valtrex herpes treatment everyday for life is your goal.
The press kept bringing up Chelsea Clinton's fictional pregnancy and wondering how they (the press) would've handled her fictional pregnancy.
Chelsea Clinton's mother and father educated her on safe sex and proper condom use and it's silly to talk about her fictional situation, when a real pregnant teen and her careless parents attempt to move into the Whitehouse.
While using a condom isn't 100% effective, having sex without any protection or education increases the chances of pregnancy and sexually transmitted disease exponentially.
I know this blog is ugly, but sometimes the truth is ugly.
Why has the media embraced this book and it's author?
Corsi's book belongs in the fiction department.
"Fortunate Son" was much more realistic and factual than "Obama Nation," but the media spurned, ignored and crucified J.H. Hatfield until he finally committed suicide. Corsi is merely an opportunistic writer, not a reporter. Please read the book in the bookstore(a fool and his money). It shouldn't take an attentive reader long to see the truth. While you are there look at his other writings. Corsi's subjects and ideas range from widely ridiculous to just plain foolish. Don't take him seriously.
I'm not sure if a candidate's tax plans are important to your decision making, but if it they are check out this article in "The Wall Street Journal and this article in "The New Standard". Now here's "Clayton's Most Unprofessional Opinion." Taxes aren't important to me personally(drum-roll please), because I'm so poor I can't afford to pay attention(and there's the rim-shot). Ha! But seriously folks, the tax plans are very important to me on a much larger level. Good and fair tax laws increase, reward and encourage the middle-class, ignore the poor and of course punish the rich. I don't want rich people actually penalized for making money, but if some are taxed down into the upper-middle-class(not likely), I know people in much worse situations. Above all, I don't want the middle-class paying as much tax as possible. Rich people pay lots of taxes and pay lots of money(tax-deductible) to their lawyers and accountants to trim as much as possible off that amount. If we see their "real" income , they pay little or nothing and the super-rich know how to actually receive huge refunds.
I hear people say, "It's not fair to tax rich people, more than poor people." I have an answer for them, "Life ain't fair!" You are fortunate to be a rich person(it doesn't matter how) and have been rewarded "unfairly." Is it fair, that a guy drives a $100,000 car, works 35 hours a week and earns $700,000 annually, but another guy rides a bus, works a combined 60 hours a week from two jobs and makes minimum wage? No, but like I said, "Life ain't fair!"
Life isn't fair, that's why we make laws. Our taxes can't fix everything, but they help.
I played with the IRS tax estimator today and used fictional criteria to come up with the numbers. The fictional information I used is listed at the bottom of the page. Joseph Magnum-of-Cristal: Earned 1 million dollars Pays $45,033 or .045 of his income for taxes* Joe Six-pack-of-Bud: Earned $100,000 Pays $11,794 or .12 of his income for taxes* That's not cool. You'll notice that Joseph has more tax credits and deductions than Joe, but I figure in the real world Joseph's CPA would make sure his client gets a few breaks. I also figured that Joe's CPA (most likely himself or an in-law), wouldn't be clever enough (or maybe brave enough) to take all possible deductions. Joe also makes less and can't contribute as much to his I.R.A. or other tax shelters.
*Clayton's math might not be "correct." If I made an error, please let me know and I'll correct it promptly!
Joseph Magnum-of-Cristal's IRS criteria:
Brothers and Sisters of America,
This is our time. Too long have we been ignorant to what has been slowly strangling us. Too long have we been the victems. We now may have the only chance we will get to have a partner in Washington.
Too long have we witnessed injustice and done nothing. We must bring about the changes that not only help the economy, healthcare and to end the senseless war in Iraq but we must work hard at restoring our republic.
The family farms are going away. Land is being taken from us by a tyrannical corporation - (the IRS). Somehow we got it in our heads that paying taxes was the American thing to do. Where I agree that taxes are necessary in many respects, the IRS has gone WAY too far!
And when did it become an American thing to do? Are we forgetting that our country was formed when brave men refused to pay taxes to England?
Barack Obama is the only one I have heard of that is actually reducing the (illegal) income tax to such a level that Americans might just figure out that they do not need it! The income tax IS constitutional but is only in regards to the GAINS of corporations - not wage earning Americans.
If you work at a job, you should NEVER pay an income tax! It's not income - it's a WAGE.
http://video.google.com/videoplay?docid=-1656880303867390173
The IRS is a corporation, it is not a branch of the Federal government. That is a fact! It is only through deception that they are seen as the "Federal Reserve". They are neither federal or a reserve - our currency is NOT backed up by gold.
I agree that it may have its uses in controlling the interest rates of lending institutions and other things, it has been allowed to go too far.
PLEASE, help Brack Obama get into the White house. Only he will be able to stand up to them and others like them that have put an insufferable strain on this economy.
Still don't believe me?
http://www.youtube.com/view_play_list?p=761CC7FCA3D98F5A
Together we stand - divided we fall.
Did you get your letter from the IRS today? I did. I also read an AP story that it cost our government 41.8 Million dollars to print and send these notices to everyone.
The letter begins: "Dear Taxpayer:
We are plaesed to inform you that the United States Congress passed and President George W. Bush signed into law the Ecomonic Stimulus Act of 2008, which provides for economic stimulus payments to be made to over 130 million American households."
More can be read at: http://news.yahoo.com/s/ap/20080307/ap_on_go_ot/dear_taxpayer
I am proposing that everyone that is getting money back from the IRS that can afford to give it to the OBAMA for Presidnet campaign please consider doing so.
Are you fired up?
GO BARACK OBAMA.
I so want to feel 100% in support of Obama, if anyone will unite this country, it will be him...but let's be honest, his economic plan is sad. To make a REAL CHANGE which our economy and every individual absolutely need, is a serious economic reform.
Why has he not even addressed THE FAIR TAX reform? why is he just focusing on the poor and so called middle class (and doesn't anyone understand our taxes will be even higher with his current plan)? Why is he not focusing on a plan that will BENEFIT:
the poor, the middle class, the rich, the small business owner, each state, the federal government, our economy and our nation as a whole?????? THE FAIR TAX abolishes the aweful IRS and our i incomprehensible tax system..it has been researched by the top economists in our nation, and solves all our problems.
I'm shocked so many people don't don't about it...Neal Boortz wrote NY TIMES bestselling books on this and its in layman's terms! Read it, go to www.fairtax.org...email your senators,congress,governors, mayor...and INSIST that MR. Obama focus on this reform andfollow through on it if he's got the guts. HE'LL GO DOWN IN HISTORY AS SAVING our beautiful country!
HE REALLY CAN MAKE A CHANGE, but it can't be talk..HE CAN UNITE AND FIX this country- but he has to know how to do it, and The Fair Tax reform WILL give him the desperately needed substance his campaign is hurting for.
Apply Tobin Tax of .0006 to all Federal Reserve transactions
(This allows an end to all individual income taxes and increase revenue for social needs)
IRS gets same books as stockholders
"True Costs" up front and published
