The Tax Court held that the amount of tax shown on the taxpayers’ return was reduced by refundable credits, but not below zero, for purposes of calculating the Sec. 6662(a) accuracy-related penalty.
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United States and France Sign FATCA Agreement
The Treasury Department announced on Thursday that the United States and France have signed a bilateral agreement requiring French banks to report to the French government information about their U.S. account holders.
Regs. Permit Midyear Changes to Employer Contributions 401(k) Plans
The IRS issued final regulations that permit employers to make midyear reductions or suspensions of safe-harbor matching or nonelective contributions to retirement plans in certain situations.
Tax Return Preparers Suspected of Filing Inaccurate EITC Claims to Be Targeted by IRS
The IRS announced in an email to tax practitioners that it will send letters in November and December to return preparers “suspected of filing inaccurate EITC claims.”
Permanent Injunction Closes Large Tax Preparation Firm
A federal district court in Ohio has issued a permanent injunction ordering ITS Financial LLC, the parent company of Instant Tax Service tax franchiser, to cease operations.
IRS Extends Fast-Track Settlement to Smaller Businesses Nationwide
Formerly available only to large and midsize businesses and in a geographically limited pilot program for smaller entities, the IRS’s Fast Track Settlement program is now available to smaller businesses nationwide, the IRS announced.
Health FSA Use-It-Or-Lose-It Rule Modified to Allow a $500 Carryover
The IRS will now permit companies to amend their cafeteria plans to allow participants in health FSAs who do not use all of the money in a plan year to use up to $500 in the next plan year, in addition to the regular $2,500 limit during the succeeding year.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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2025 tax software survey
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