March 2012

March 30, 2012

Some Tax-Exempt Organizations Are Receiving Erroneous Penalty Notices; Relief Available

Practitioners are reporting that some tax-exempt organizations have received penalty notices from the IRS for late filing of Forms 990, even though they received an automatic extension and filed during March, as instructed by the IRS.

March 28, 2012

IRS and OECD Separately Address Transfer Pricing Issues

The IRS announced a reorganization of its advance pricing agreement (APA), mutual agreement, and competent authority programs into one new program.

March 26, 2012

TIGTA Calls for Improvements to IRS Volunteer Tax Prep. Program Database

TIGTA reported on its study of the IRS’s monitoring of volunteer tax preparation services.

March 22, 2012

Roth IRAs Cannot Be S Corporation Shareholders, Ninth Circuit Holds

The Ninth Circuit, affirming the Tax Court, held that a corporation whose sole shareholder was a Roth IRA was not a valid S corporation.

March 16, 2012

IRS Suspends Repair/Capitalization Exams Pending Accounting Method Changes

The IRS issued a directive for field examinations on the repair vs. capitalization issue that essentially suspended current examinations so as to permit taxpayers to file accounting method changes under just-issued revenue procedures.

March 15, 2012

New Online Search Tool Makes It Easier to Find Information About Exempt Organizations

The IRS announced that taxpayers can find information about tax-exempt organizations in a new online search tool called Exempt Organizations Select Check.

March 14, 2012

Prop. Regs. Would Require Taxpayers That Received EINs to Update Information

The IRS issued proposed regulations that would require taxpayers that obtain employer identification numbers (EINs) to update their information with the IRS.

March 12, 2012

Tax Court Disallows Cost Segregation of Apartment Building Components

In a case exploring the extent of allowable cost segregation in depreciable rental real estate, the Tax Court held that all but a small handful of items identified by the building’s owner had to be depreciated over the life of the building.

March 9, 2012

IRS Issues Foreign-Targeted Bond Guidance

The IRS issued interim guidance on registration of foreign-targeted bonds and provided transitional relief for withholding agents on the related portfolio interest exception.

March 8, 2012

Much-Anticipated Guidance Issued on Accounting Method Changes for Repair Regs.

The IRS issued two revenue procedures detailing how taxpayers may obtain IRS automatic consent to the accounting method changes required by the rules.

March 7, 2012