January 2013

January 31, 2013

Individual Health Care Mandate Rules Under Sec. 5000A Proposed

The IRS released proposed rules for the Sec. 5000A shared-responsibility payment—the penalty or tax imposed on individual taxpayers who do not obtain minimum essential health care coverage beginning in 2014.

January 30, 2013

Changes to Rules on Failure to File Gain Recognition Agreements Proposed

The IRS issued proposed regulations to update the rules that apply to U.S. taxpayers that fail to file gain recognition agreements when they transfer certain property to foreign corporations in nonrecognition transactions

January 28, 2013

IRS Further Delays Acceptance of Returns Claiming Form 8863 Education Credits

The IRS announced a further delay in processing returns that contain Form 8863, Education Credits, which must be filed by people claiming the American opportunity and the lifetime learning tax credits.

January 25, 2013

Proposed Regs. Would Govern Employment Tax Liability of Third-Party Agents

The IRS released proposed regulations that would govern the liability for employment taxes when an employer designates an agent under a “service agreement” to pay its employees and to satisfy all employment tax obligations.

January 24, 2013

IRS Files Motion to Suspend Injunction in Return Preparer Regulation Case

The IRS filed a motion in federal court to suspend an injunction that forbids it from continuing with its registered tax return preparer program, pending appeal of the case

January 24, 2013

Updated Forms, Procedures Issued for Plan Sponsors in IRS’s Voluntary Correction Program

The IRS announced that it was issuing updated procedures and forms for sponsors of retirement plans.

January 23, 2013

Sec. 6038D Reporting of Specified Foreign Financial Assets Postponed for One Year

The IRS announced that it is postponing for at least one year the requirement that domestic entities report interests in specified foreign financial assets.

January 21, 2013

Federal Court Strikes Down IRS Tax Return Preparer Registration Program

A federal district court struck down the IRS’s registered tax return preparer program and enjoined it from enforcing the regulations.

January 18, 2013

IRS Provides Penalty Relief for Farmers Hit by Delayed Start of Tax Season

The IRS announced that it will provide estimated tax penalty relief for farmers and fishermen who are not able to file and pay their 2012 taxes by the March 1 deadline due to the delayed start for filing tax returns.

January 18, 2013

FATCA Final Regulations Cover All the Bases

The IRS issued final regulations providing rules on information reporting by foreign financial institutions (FFIs) and withholding on certain payments to FFIs and other foreign entities.

January 15, 2013

Simplified Home-Office Deduction Safe Harbor Announced

The IRS gave taxpayers an optional safe-harbor method to calculate the amount of the deduction for expenses for business use of a residence during the tax year under Sec. 280A.

January 15, 2013

IRS Corrects 2013 Tax Tables

The IRS announced corrections to two of the 2013 tax tables it issued on Jan. 11.

January 11, 2013

Tax Tables, Other Inflation Adjustments, Issued for 2013

The IRS issued inflation-adjusted items for 2013 as well as the new income tax rate tables now in effect as a result of the American Taxpayer Relief Act.

January 10, 2013

Appeals Court Reverses Claims Court, Disallows LILO Deductions

The Federal Circuit issued a decision reversing and remanding a case to the Court of Federal Claims, which had upheld a LILO transaction.

January 9, 2013

Regulations Issued on Treasury Inflation-Protected Securities Issued at a Premium

The IRS issued regulations on the tax treatment of TIPS that have more than a de minimis amount of premium and on debt instruments with bond premium carryforward in the holder’s final accrual period.

January 8, 2013

“Cliff” Law Reconfigures Tax Preparation and Planning

With its scores of new and extended provisions, the American Taxpayer Relief Act offers something for nearly all taxpayers and their preparers to assess and implement as they begin preparing 2012 returns and plan for the future.

January 8, 2013

Start of Tax Season Delayed Until Jan. 30; Later for Some Taxpayers

The IRS announced that it plans to open the 2013 filing season and begin processing many individual income tax returns on Jan. 30

January 4, 2013

IRS Issues Withholding Tables for American Taxpayer Relief Act

The IRS issued newly revised percentage withholding tables to implement the rates that will be in effect this year now that the American Taxpayer Relief Act has been enacted.

January 3, 2013

To Fight Identity Theft, IRS Proposes Rules for Truncating Identifying Numbers

Proposed regulations permit filers of information returns to use truncated taxpayer identification numbers (TTINs) when issuing certain payee statements.

January 2, 2013