Publication 553 - Highlights Of 2002 Tax Changes Page 15
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31Peanut Quota Buyout Program
Electronic Form 1099
Payments
For tax years ending after March 9, 2002, Form 1099 can
be issued electronically if the recipient consents to receive
The marketing quota program for peanuts was repealed
it that way.
effective May 13, 2002. The USDA will pay eligible peanut
quota holders for the loss in value of peanut quotas result-
Fast Track Mediation
ing from the repeal. The payments received by quota
holders are subject to federal income tax. For more infor-
The IRS now offers fast track mediation services to help
mation, see chapter 4 in Publication 225, Farmer’s Tax
taxpayers promptly resolve many disputes resulting from:
Guide.
•
Examinations (audits),
Tax Shelter Disclosure Statement
•
Offers in compromise,
•
For each reportable tax shelter transaction in which you
Trust fund recovery penalties, and
participated directly or indirectly, you must attach a disclo-
•
Other collection actions.
sure statement to your return for each year that your tax
liability is affected by your participation in the transaction.
For more information, see Publication 3605, Fast Track
This requirement now applies to individuals, trusts, part-
Mediation, or visit
nerships, S corporations, and regular corporations. Previ-
ously, it only applied to regular corporations. A partnership
Tax Schedules for Corporations
or S corporation must attach a disclosure statement to its
return for each year that any partner or shareholder’s tax
If a corporation’s total receipts for the tax year and its total
liability is affected or is reasonably expected to be affected
assets at the end of the tax year are less than $250,000, it
by its participation in the transaction. In addition, for the
first year a disclosure statement is attached to your return,
generally is no longer required to complete Form 1120
you must send a copy to:
Schedules L, M – 1, and M –2 (Parts III and IV of Form
1120 –A). For more information, see the Instructions for
Internal Revenue Service
Forms 1120 and 1120 –A.
LM:PFTG:OTSA
Large & Mid-Size Business Division
New Publication on Home-Based
1111 Constitution Avenue, NW
Business Tax Avoidance Schemes
Washington, DC 20224.
The Internal Revenue Service has released Publication
Disclosure is required for a reportable transaction that is
4035, Home-Based Business Tax Avoidance Schemes.
a listed transaction. A transaction is a listed transaction if it
The schemes described in the publication claim to offer tax
is the same as or substantially similar to a transaction
relief but actually result in illegal tax avoidance.
determined to be a tax avoidance transaction and identi-
fied as a listed transaction in a notice, regulation, or other
Reporting Deemed Sales of Assets
published guidance. For example, Notice 2001 –51, in
Under Section 338
Internal Revenue Bulletin 2001 –34, identifies certain listed
transactions.
See section 1.6011 –4T of the regulations for more
A corporation that is either an old target corporation or a
new target corporation in a transaction involving the
details including:
deemed sale of corporate assets under section 338 of the
•
Definitions of “reportable transaction,” “listed trans-
Internal Revenue Code must file new Form 8883, Asset
action,” and “substantially similar.”
Allocation Statement Under Section 338, to report informa-
•
Form and content of the disclosure statement.
tion concerning the transactions. Form 8883 includes infor-
mation previously reported on Form 8023, Elections Under
•
Filing requirements for the disclosure statement.
Section 338 for Corporations Making Qualified Stock
Purchases. Continue to file Form 8023 to make qualified
stock purchase elections under section 338, in addition to
Certain transactions not previously classified as
!
reportable transactions must also be disclosed if
filing Form 8883. Moving the information reporting for a
entered into after December 31, 2002. For more
section 338 transaction to the new Form 8883 makes it
CAUTION
information, see Disclosure of Reportable Transactions
easier to file a timely election on Form 8023. For details,
under 2003 Changes, later.
see the instructions for Form 8883 and Form 8023.
Chapter 2 Tax Changes for Businesses
Page 15
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