IRS Notes

• Beginning in tax year 2011, employers were originally required to report the total value of an employee's health insurance coverage on an employee's Form W-2. The IRS has since deferred the requirement until 2012 to give employers additional time to make changes to payroll systems or procedures. However, the 2011 Form W-2 will include the codes that employers may use to report the cost of coverage under an employer-sponsored plan if they are prepared to begin reporting in 2011. This reporting is for informational purposes only. The IRS has stated that the goal is to show employees the value of the coverage. It is expected that the value will include health, dental, vision, HRA, and HSA.
• The IRS issued Revenue Procedure 2011-52, which covered inflation adjustment items for 2012. Items of interest to tax-exempt organizations include adjustments affecting the treatment of dues paid to agricultural or horticultural organizations, insubstantial benefit limitations for contributions associated with charitable fundraising campaigns, and the reporting exception for certain exempt organizations with nondeductible lobbying expenditures.
• A reminder for tax preparers to renew PTINs on time: Notice 2011-80 states that PTINs must now be renewed on a calendar year basis.
• The IRS is now posting a list of organizations that have had their federal tax-exempt status automatically revoked for failing to file an annual information return or notice for three consecutive years. The list was posted on September 8, 2011 and will continue to be updated by the IRS.

For more information on any of the above topics, visit www.irs.gov.