The IRS issued the inflation-adjusted figures for the annual contribution limitation for HSAs and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans for calendar year 2013.
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IRS Proposes Expanding Tax Return Information It Will Disclose to HHS Under Health Care Acts
The IRS issued proposed regulations relating to how it will release certain tax return information to the Department of Health and Human Services, as required by 2010’s health care legislation.
Congressional Subcommittee Hearing Centers on Expiring Tax Provisions
Witnesses told the House Ways and Means Select Revenue Subcommittee why particular tax breaks should be extended or made permanent in a hearing on April 26.
Supreme Court Affirms That 6-Year Limitation Period Does Not Apply to Overstated Basis
The Supreme Court affirmed that the extended six-year statute of limitation, which applies when a taxpayer “omits from gross income an amount properly includible” in excess of 25% of gross income, does not apply when a taxpayer overstates its basis in property it has sold.
Taxpayers Can Deduct Certain Local Lodging Expenses Under Proposed Rules
The IRS issued proposed regulations that permit employees to treat certain expenses paid or incurred for local lodging as deductible business expenses.
Federal Circuit Dismisses Refund Suit Based on All-Zero Returns
A married couple who filed tax returns listing all income and tax due as “zero” were denied refunds in a decision by a U.S. Court of Appeals.
Rules for Reporting Interest on Deposits Paid to Foreign Taxpayers Are Finalized
The IRS issued final regulations requiring U.S. financial institutions to report interest payments to certain nonresident alien individuals of $10 or more per year.
Proposed Regs. Would Require E&P to Be Allocated to Acquiring Corporations in Corporate Reorganizations
The IRS has proposed amending existing regulations under Sec. 312 and Sec. 381 to clarify that in certain corporate reorganizations, the “acquiring corporation” succeeds to the full E&P account of the transferor corporation.
IRS Finalizes Regulations on Sec. 642(c) Ordering Rules for Estates and Trusts
The IRS issued final regulations requiring that a provision in a trust, will, or local law that specifically indicates the source out of which amounts are to be paid, permanently set aside, or used for a charitable purpose must have an independent economic effect aside from income tax purposes if the allocation is to be respected for federal tax purposes.
IRS Creates Priority Phone Service for Correspondence Audits
The IRS on April 2 launched a new toll-free phone service for tax professionals to use when responding to correspondence examination telephone calls or letters.
Colorado’s “Amazon” Law Requiring Out-of-State Retailers to Report Sales Held to Be Unconstitutional
A federal district court held that the Colorado law requiring out-of state retailers to report information about customers’ purchases to each customer and to the state is unconstitutional.
TIGTA Recommends Improvements to IRS Cybersecurity System
TIGTA reports that the IRS’s computer security response center is performing effectively, but further improvement is needed.
Medical Center’s FICA Refund Claim Dismissed as Untimely
The First Circuit dismissed a suit for refund of FICA taxes, upholding a lower court determination that discovery requests were not warranted and that the information sought from the IRS would not have proved that the refund claim, which the IRS claimed it never received, was timely.
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.
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.
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.
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.
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.
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.
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.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
