February 2016

February 29, 2016

Rules Determine Attorneys’ Fees and Costs for Prevailing Parties in IRS Proceedings

Final regulations issued by the IRS govern the awarding of costs and attorneys’ fees to taxpayers who meet certain net worth requirements and who prevail in administrative or court proceedings against the IRS.

February 26, 2016

Still More Accounts Found Hacked in IRS “Get Transcript” Breach

A TIGTA investigation into the data breach first discovered last May brings the total number of taxpayers whose tax transcripts were potentially compromised to 724,000.

February 25, 2016

IRS LB&I Unveils New Audit Procedures

The new examination process, which will be effective May 1, 2016, includes new procedures for refund claims while an examination is underway.

February 23, 2016

Colorado’s Use Tax Notice and Reporting Law Is Constitutional, Tenth Circuit Holds

The court held that the law does not discriminate against out-of-state retailers.

February 22, 2016

Final Rules Govern Sec. 6038D Reporting by Specified Domestic Entities

The IRS finalized proposed regulations issued in 2011 that require reporting of specified foreign financial assets by specified domestic entities on Form 8938, Statement of Specified Foreign Financial Assets.

February 18, 2016

Amended Rules Govern FIRPTA Dispositions After PATH Act

Provisions of the Protecting Americans From Tax Hikes Act of 2015 changed the tax treatment of dispositions of investments in real property by foreign taxpayers.

February 17, 2016

2016’s Dirty Dozen Tax Scams

The IRS released its annual list of the “dirty dozen” worst tax scams, starting with identity theft and winding up with frivolous tax arguments.

February 17, 2016

Final Regulations Govern Sec. 6045 Reporting of Debt Instruments by Brokers

The IRS issued final regulations on the rules for brokers to report transactions involving debt instruments and options, including original issue discount.

February 11, 2016

Due Date for Estate Basis Reporting Postponed Once Again

The IRS further postponed the due date for the new reporting requirement, under which estates must report the value of estate assets to the IRS and to beneficiaries.

February 11, 2016

Congress Enacts Permanent Ban on State and Local Internet Taxes

Thursday, the Senate approved a bill making the Internet Tax Freedom Act’s ban on state and local taxes on internet access permanent.

February 10, 2016

AICPA “Fly-In” to D.C. Seeks Path Toward a 21st Century IRS

The “fly-in” was intended to highlight dissatisfaction by practitioners and taxpayers with the IRS’s admittedly unacceptable levels of service and CPAs’ potential role in improving the IRS in that and other ways.

February 10, 2016

IRS Suffers Another Data Breach

The IRS revealed that it discovered and stopped an automated cyberattack on its e-filing personal identification number (PIN) system last month.

February 9, 2016

President’s Budget Proposes Many Tax Changes

In addition to a proposed spending blueprint for the government, President Barack Obama’s proposed FY 2017 federal budget contains a wide variety of tax law changes that would affect individuals and businesses.

February 8, 2016

Additional 2016 Inflation Adjustments Released

The IRS issued inflation adjustments for the Sec. 179 expensing limits, the above-the-line deduction for eligible expenses of educators, and the deductible amount for van pool and transit expenses.

February 5, 2016

Maximum Vehicle Values for Personal-Use Vehicles Are Issued

The IRS issued the 2016 inflation-adjusted amounts for the maximum vehicle values for purposes of determining the amount that is included in employees’ income for personal use of an employer-provided vehicle.

February 4, 2016

IRS Restores E-Filing Services

The IRS’s tax return e-filing system was back in operation Thursday afternoon, a day after a computer hardware failure knocked out it and other IRS system services.

February 3, 2016

Regulations Clarify Partnership Allocations of Creditable Foreign Taxes

New rules released by the IRS are intended to improve an existing safe harbor for allocating creditable foreign taxes so that they are deemed to be in accordance with the partners’ interests in the partnership.