After reviewing the fourth quarter 2007 sales of American Honda Motor Company, Inc., the Internal Revenue Service announced that purchasers of qualifying Honda vehicles may continue to claim the Alternative Motor Vehicle Credit. Given the number of vehicles sold, the phase out period for Honda vehicles began on Jan. 1, 2008.

Mellon Bank has agreed to pay $16.5 million to the federal government to settle claims that it allowed overwhelmed employees to destroy thousands of federal tax returns and payments in 2001, The Associated Press reported.

Internal Revenue Service Chief Counsel Donald L. Korb has selected Gregg D. Polsky as the 2007-2008 Professor in Residence, according to a Tuesday press release from the Service. He succeeds Calvin Johnson, whose term as Professor in Residence concluded on May 31, 2007.

The application for requesting a reduced fee for entering into an installment agreement for the payment of federal taxes owed is available, the IRS announced in a press release Tuesday. Form 13844, Application for Reduced User Fee for Installment Agreements, is used to request the reduction. The IRS is working to automate the application process to calculate the appropriate user fees up front, eventually phasing out Form 13844.

Taxpayers have an extra two days to file their personal income tax returns in Massachusetts this year. The deadline for filing income tax returns is extended to Tuesday, April 17, 2007, because April 15 falls on a Sunday and Monday, April 16 is the Patriot's Day holiday. (Coincidentally, federal income tax returns also are due on April 17 this year because April 16 is a legal holiday in Washington, D.C.)