December 2010

December 30, 2010

IRS Exempts CPA-Supervised Nonsigners From New Preparer Rules

The IRS released guidance on the implementation of new regulations governing tax return preparers, and provided an exception to its return preparer regulation plan for nonsigning preparers supervised by a CPA, attorney, enrolled agent or other Circular 230 practitioner.

December 29, 2010

IRS Updates Guidance on Adequate Disclosure of Positions

The IRS has released updated guidance identifying when a taxpayer’s disclosure of an item or position in an income tax return is adequate for purposes of reducing the understatement of tax penalty and the tax return preparer penalty for understatement due to unreasonable positions.

December 28, 2010

Tax Law Changes Will Delay Start of Filing Season for Some Taxpayers

The IRS is warning taxpayers that it will not be accepting certain 2010 individual tax returns until mid- or late February, due to tax law changes recently enacted by Congress.

December 23, 2010

IRS Releases 2011 Tax Tables and Other Inflation Adjustments

The IRS released the 2011 tax rate tables and other inflation adjustments, which it had been holding while waiting for Congress to resolve various tax issues.

December 22, 2010

Congress Resolves Many Tax Issues During Lame-Duck Session

Congress adjourned its year-end lame-duck session on December 22 after passing legislative fixes for several pending tax issues, including the estate tax, the expiration of the 2001 and 2003 tax cuts, an alternative minimum tax (AMT) patch, and extensions of many expired provisions. However, it failed to repeal the expanded Form 1099 reporting requirements that were enacted as part of this spring’s health care reform legislation.

December 17, 2010

Congress Sends Tax Cut Extension Bill to President

The House of Representatives late on December 16 by a vote of 277–148 passed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

December 15, 2010

Senate Approves Tax Cut Extender Bill

The Senate voted 81–19 in favor of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

December 14, 2010

Federal Court Rules Health Care Insurance Mandate Unconstitutional

A federal district court has held that the health care reform legislation’s mandate that individuals obtain health insurance is unconstitutional.

December 13, 2010

Final Regs Issued Requiring Uncertain Tax Position Disclosure Statement

The IRS issued final regulations requiring some corporations to file a Schedule UTP, disclosing their uncertain tax positions when filing a return.

December 10, 2010

Provisions in the Senate’s Tax Cut Extension Bill

Senate Majority Leader Harry Reid, D-Nev., introduced legislation on December 9 that would postpone the sunset of the 2001 and 2003 tax cuts, reduce the estate tax, and extend a number of expired provisions, as well as extending unemployment benefits.

December 9, 2010