November 2012

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

Standard Mileage Rates Go Up a Penny in 2013

Optional standard mileage rates for use of a vehicle will go up by 1 cent per mile for 2013, the IRS announced.

November 20, 2012

Effective Date of Tangible Property Regs. Delayed

The IRS announced it is delaying the effective date of the temporary regulations it issued in Dec. 2011 governing whether tangible property expenses could be deducted or had to be capitalized.

November 19, 2012

Failure to Enact AMT Patch Could Push Start of Tax Season to March for Millions, IRS Warns

The IRS warns that the start of tax season could be delayed for millions of taxpayers if the AMT patch is not enacted by the end of the year.

November 16, 2012

Hurricane Sandy Victims Can Take Hardship Distributions, Loans, From Retirement Plans

The IRS will allow taxpayers who have been adversely affected by Hurricane Sandy to take hardship distributions or loans from their retirement plans.

November 14, 2012

Modernized e-File Is Improving, but IRS Can’t Retire Legacy System Yet

TIGTA reported on the IRS’s progress in retiring its Legacy e-File system and moving to the Modernized e-File (MeF) system.

November 13, 2012

How Can the Nonpayment Testing Period for COD Income Be Improved?

The IRS asked for comments on whether it should amend existing the rules that require applicable financial entities to issue Forms 1099-C reporting COD income when a 36-month nonpayment testing period has expired.

November 7, 2012

Leave-Based Donation Programs Allowed for Hurricane Sandy Relief

In response to the extraordinary damage caused by Hurricane Sandy and the extreme need for relief, the IRS has released guidance for employers who are considering adopting leave-based donation programs to aid the storm’s victims.

November 6, 2012

One-Time Abatement of $5,000 Frivolous Filing Penalty Announced

Taxpayers who have filed all required tax returns and paid all outstanding tax liabilities, including penalties (except for the Sec. 6702 penalty) and related interest, may qualify for a one-time reduction to $500 of any unpaid penalties that the IRS has assessed.

November 2, 2012

IRS Extends Deadlines, Provides Relief for Hurricane Sandy Victims

The IRS announced various tax relief measures for individuals and businesses affected by Hurricane Sandy in Connecticut, New Jersey, and New York.

November 1, 2012

S.C. Taxpayers’ Social Security Numbers, Credit Cards Hacked

The South Carolina Department of Revenue is providing affected taxpayers a year of credit monitoring after a hacker stole information including 3.6 million Social Security numbers and 387,000 credit and debit card numbers from its computer systems.