2012 tax news - The Tax Adviser

December 27, 2012

Mandatory Language for Consents to Disclose, Use Taxpayer Information Modified

The IRS has provided guidance to tax return preparers about the format and content of taxpayer consents to disclose and consents to use tax return information and modified the mandatory language required on each taxpayer consent.

December 26, 2012

Rules on Use, Disclosure of Taxpayer Information Finalized

The IRS issued final regulations under Sec. 7216 that govern the circumstances in which tax return preparers can disclose or use certain limited tax return information.

December 26, 2012

Final Regs. Remove De Minimis Partner Rule

The IRS issued final regulations that remove the de minimis partner rule from Regs. Sec. 1.704-1(b)(2)(iii)(e).

December 21, 2012

Sec. 304 Anti-Abuse, Anti-Avoidance Rules Finalized

The IRS finalized regulations that apply to transactions subject to Sec. 304 but that are structured with the principal purpose of avoiding the statute’s application.

December 18, 2012

Voluntary Classification Settlement Program Expanded, Liberalized

The IRS announced significant changes to its Voluntary Classification Settlement Program (VCSP).

December 17, 2012

Proposed Regs. Provide Rules for Whistleblower Awards

The IRS issued proposed regulations for whistleblower awards, as well as rules governing the disclosure of return information under Sec. 6103(h) to pursue these claims.

December 14, 2012

Tangible Property Regs. Amended to Implement Delayed Effective Date

The IRS released technical amendments that delay the effective date of the temporary regulations it issued in December 2011 governing whether tangible property expenses could be deducted or had to be capitalized.

December 13, 2012

Rules Distinguishing Tips From Service Charges Delayed Until 2014

The IRS announced that businesses have additional time to make the changes needed to comply with the proper treatment of tips and service charges.

December 7, 2012

Reportable Transaction Rules Updated for Certain Losses

Rev. Proc. 2013-11 provides that certain losses are not taken into account in determining whether a transaction is a reportable transaction.

December 4, 2012

IRS Issues Proposed Regs. on 3.8% Net Investment Income Tax

The IRS released proposed regulations governing the 3.8% net investment income tax imposed under Sec. 1411.

December 3, 2012

Guidance Issued on Additional Medicare Tax

The IRS issued proposed regulations concerning the 0.9% Medicare surtax, which takes effect next year.

November 30, 2012

Income from Partnership Is Self-Employment Income Where Taxpayer Chose Not to Be a Partner

The Eleventh Circuit held that payments a taxpayer received from a nursing home business were taxable self-employment income despite the taxpayer’s convoluted attempts to characterize them as partnership distributions.

November 29, 2012

New ITIN Procedures Issued for 2013 Filing Season

The IRS promised issued new ITIN procedures for the 2013 filing season.

November 26, 2012

Rev. Proc. Updates Guidance on Adequate Disclosure of Return Positions

The IRS released its annual update 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.

November 21, 2012