October 2013

October 31, 2013

PTIN Renewal System Reopens

Two weeks after the end of the government shutdown, the IRS reopened its registration system for renewing preparer tax identification numbers (PTINs) for the 2014 filing season.

October 31, 2013

IRS Releases Inflation Adjustments for 2014

The IRS issued the annual inflation adjustments for 2014 for more than 40 tax provisions and the tax tables for 2014.

October 30, 2013

Social Security Wage Base Rises to $117,000 for 2014

The Social Security Administration announced that the wage base above which taxes for old age, survivors, and disability insurance (OASDI) are not due will increase from $113,700 to $117,000 in 2014.

October 29, 2013

Guidance Issued for FFIs with FATCA Agreements

The IRS issued its latest guidance in preparation for the implementation of the FATCA reporting and withholding requirements.

October 28, 2013

Ineffective Income and Withholding Verification Hinder IRS in Detecting Fraudulent Returns

A TIGTA report concluding that inadequate income and withholding verification results in the IRS’s missing many fraudulent returns.

October 22, 2013

Filing Season Will Be Delayed, IRS Says

The IRS announced a delay of one or two weeks in the start of the 2014 filing season as a result of the 16-day government shutdown to allow adequate time for the IRS to prepare and test systems.

October 21, 2013

Internet Tax Freedom Act Preempts Illinois Click-Through Nexus Law

The Illinois Supreme Court held that Illinois’s click-through nexus law is expressly preempted by the federal Internet Tax Freedom Act, which prohibits states from imposing discriminatory taxes on electronic commerce.

October 17, 2013

IRS and Tax Court Reopen After Government Shutdown; PTIN Renewals Delayed

After the president signed the bill reopening the federal government, the IRS and Tax Court announced that they are back open for business. But the IRS also announced a delay in 2014 PTIN renewals.

October 16, 2013

Government Shutdown, Debt Ceiling Deal Includes One Tax Provision

Wednesday’s deal to fund the federal government through Jan. 15 and to extend the federal government’s borrowing authority through Feb. 7 in the end contained only one tax provision, making a minor change to 2010’s health care legislation.

October 10, 2013

Federal Courts to Stay Open Through Oct. 17

The federal judiciary announced on Thursday that federal courts will remain open through Thursday, Oct. 17, unless the government shutdown is resolved and court funding is restored before then.

October 9, 2013

IRS Not Issuing Liens or Levies, Enforcement Actions Limited, During Shutdown

The IRS updated its website to notify taxpayers that, during the current government shutdown, the IRS is not sending out liens or levies either generated automatically or sent by personnel.

October 3, 2013

Orthodontist Sues to Reinstate Employer Mandate in Health Care Law

An orthodontics practice in Florida filed suit to force the federal government to reinstate the original effective date of the Sec. 4980H shared-responsibility penalty that was passed as part of the Patient Protection and Affordable Care Act.

October 2, 2013

Tax Court Holds Assumption of Estate Tax Liability May Reduce Value of Gift

The Tax Court denied an IRS motion for summary judgment in an estate and gift tax case where the taxpayer made gifts to her daughters while requiring them to pay any tax liability that would have been due if the taxpayer had died within three years of making the gifts.

October 1, 2013

Tax Court Closed During Government Shutdown; IRS Announces No Refunds

With the federal government shutting down at midnight on Sept. 30, the Tax Court announced that, unlike other federal courts, it is closing during the shutdown.

October 1, 2013

How the Government Shutdown Affects Taxpayers and Tax Practitioners

The shutdown of the federal government on Oct. 1 involves a large number of federal government functions, including many affecting taxpayers and tax practitioners.