2012 - Page 2 of 9 tax news

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.

October 31, 2012

IRS Delays Oct. 31 Deadlines for Taxpayers and Preparers Affected by Hurricane Sandy

The IRS announced it is granting taxpayers and tax preparers affected by Hurricane Sandy until Nov. 7 to file returns and accompanying payments normally due on Oct. 31.

October 24, 2012

FATCA Prop. Regs. Amended to Extend Various Deadlines

The IRS is delaying various FATCA-related deadlines because it has received feedback that complying with the original deadlines is difficult for some taxpayers.

October 18, 2012

IRS Announces Inflation Adjustments for 2013

The IRS released its annual revenue procedure making inflation adjustments to the gift tax annual exclusion and other items for tax years beginning in 2013.

October 15, 2012

TIGTA: IRS Pays Millions in Unnecessary Interest on NOL Carrybacks

TIGTA found that IRS delays in processing NOL carrybacks result in the IRS’s paying millions of dollars in interest unnecessarily

October 12, 2012

New Yorkers Should Act Now to File Protective Refund Claims for MTA Tax

Time is running out for taxpayers who paid New York’s metropolitan commuter transportation mobility tax when it was first imposed in 2009 to file protective refund claims in the wake of the tax’s being declared unconstitutional.

October 11, 2012

Dozens Indicted on Stolen Identity Tax Refund Fraud Charges

Federal officials in Miami announced indictments of 40 people in 20 cases for stolen identity tax refund fraud.

October 10, 2012

Whistleblower’s Claim Is Not Entitled to Tax Court Review

The Tax Court held that it could not order the IRS to reopen an individual’s whistleblower claim under Sec. 7623(b), and the court dismissed his petition.

October 4, 2012

IRS Issues Interim ITIN Procedures for 2011 Tax Returns on Extension

The IRS has posted special instructions for certifying acceptance agents to use in certifying identification documents for 2011 tax year filers who are filing on extension—returns that are due by Oct. 15, 2012.

September 27, 2012

TIGTA Shines Light on Large Tax Delinquencies of Federal Government Agencies

TIGTA found that 70 federal agencies had unpaid employment taxes totaling $14 million, and 18 federal agencies were delinquent in filing 39 employment tax returns, as of Dec. 31, 2011.

September 26, 2012

Special Per Diem Rates Updated for 2012–2013

The IRS issued the annual update of special per diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home.

September 25, 2012

Tax Court Defines Gross Receipts for the Research Credit

The Tax Court clarified that nonsales income is included in gross receipts for purposes of the Sec. 41 research credit.

September 21, 2012

PTIN Information Release Concerns Aired

The AICPA has expressed concerns to the IRS about the IRS’s public release of information of CPAs and other federal tax return preparers the IRS collects as part of its PTIN registration requirement.

September 20, 2012

Draft Instructions to Form 706 Provide Guidance on Portability Election

Draft Form 706 instructions provide guidance for electing the portability of a deceased spouse’s unused estate tax exclusion amount and for the executor’s use of the check box to opt out of electing portability of the unused portion of the exclusion amount.

September 19, 2012