The IRS announced plans to phase in the requirements of the Foreign Account Tax Compliance Act (FATCA).
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100,000 Preparers Did Not Comply with PTIN Rules
The IRS announced that it has identified approximately 100,000 tax return preparers who did not comply with the new rules for preparer tax identification numbers (PTINs), and it is sending them letters informing them of the problem.
AICPA Offers Guidance on Registered Preparer Competency Exam
In a July 7 letter to IRS Commissioner Doug Shulman, the AICPA offered its perspective on the agency’s development of the registered tax return preparer examination.
Tax Court Allows Deduction for Payment to Long-Term Caregivers
The Tax Court held that payments made to an elderly woman’s caregivers for personal care that she required due to her diminished capacity qualified as long-term care services and were therefore deductible.
IRS Makes Dodd-Frank Mandated Language Changes to Regulations
To comply with requirements of the Dodd-Frank Act, the IRS has issued temporary and proposed regulations that remove all references to “credit ratings” from the Treasury regulations.
IRS Addresses Tax Treatment of Tax-Free Exchanges of Annuities
The IRS has given taxpayers guidance on the tax treatment of exchanges of annuity contracts under Secs. 72 and 1035.
IRS Raises Standard Mileage Rate for Second Half of 2011
In response to rising gasoline prices, the IRS has raised the standard mileage rate for business use of an automobile from 51 cents per mile to 55½ per mile, effective July 1.
IRS Finalizes Automatic Five-Month Extension for Partnership, Trust and Estate Returns
Final regulations set the time for automatic extensions of partnership, trust and estate income tax returns at five months (T.D. 9531). Under this rule, the extended returns and Schedules K-1 for partners and beneficiaries will generally be due September 15.
House Passes Bill with Tax Patent Provision, Sends Back to Senate
The House of Representatives passed the America Invents Act (H.R. 1249), which includes a provision intended to stop the granting of patents for tax strategies.
IRS Publishes Interim Guidance on Stock Basis Reporting
On June 22, the IRS issued interim guidance on issues relating to the basis of stock subject to broker reporting.
IRS Suspends Foreign Asset, Passive Foreign Investment Company Information Reporting Rules
The IRS announced that it is suspending the information reporting requirements for certain individuals with foreign assets and shareholders of passive foreign investment companies (PFICs) under Secs. 6038D and 1298(f) (Notice 2011-55)
IRS Further Extends Deadline for Certain 2009 and Earlier FBARs
The IRS has further extended the deadline for certain persons to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), for 2009 and earlier years (IRS Notice 2011-54). The new filing deadline is November 1, 2011. The extension applies to persons with signature authority over a foreign financial account, but no financial interest in the account.
Fourth Circuit Upholds Two-Year Innocent Spouse Limitation Period
The Fourth Circuit overturned a Tax Court decision and upheld a Treasury regulation that sets a two-year statute of limitation on claims for innocent spouse relief.
IRS Finalizes Alternative Simplified R&D Credit Rules
The IRS issued final regulations governing the election and calculation of the alternative simplified research and development credit.
IRS Eliminates Form 5472 Duplicate Filing Requirement
The IRS issued temporary and proposed regulations to remove the duplicate filing requirement for Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business.
IRS Finalizes Circular 230 Regulations
The IRS issued final regulations May 31 implementing components of its initiative to register and regulate all paid tax return preparers.
IRS Gives Relief for Late Elections to Combine Real Estate Activities
The IRS established a special procedure by which taxpayers can make a late election to treat all their real estate activities as a single activity for purposes of meeting material participation rules.
Treasury Releases Plan to Review All Regulations
The Treasury Department on May 26 released a plan to review all existing Treasury regulations and identify those that are “obsolete, unnecessary, excessively burdensome, or ineffective.”
AICPA Speaks Out Against Proposed Model Sales and Use Tax Statute
The AICPA testified at a hearing May 18 to voice its opposition to a model statute drafted by the Multistate Tax Commission (MTC) that would authorize states to require nonresident companies to report sales transactions with in-state consumers in an effort to increase use tax compliance.
New “Killer B” Regulations Issued
The IRS has issued new final regulations on cross-border reverse triangular reorganizations, popularly known as “Killer B” transactions.
INDIVIDUALS
Current Developments in Taxation of Individuals: Part 1
This update surveys recent federal tax developments involving individuals, including court cases, rulings, and guidance issued during the six months ending October 2025.
