The IRS has released updated guidance identifying when a taxpayer’s disclosure of an item or position in an income tax return is adequate for purposes of reducing the understatement of tax penalty and the tax return preparer penalty for understatement due to unreasonable positions.
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Tax Law Changes Will Delay Start of Filing Season for Some Taxpayers
The IRS is warning taxpayers that it will not be accepting certain 2010 individual tax returns until mid- or late February, due to tax law changes recently enacted by Congress.
IRS Releases 2011 Tax Tables and Other Inflation Adjustments
The IRS released the 2011 tax rate tables and other inflation adjustments, which it had been holding while waiting for Congress to resolve various tax issues.
Congress Resolves Many Tax Issues During Lame-Duck Session
Congress adjourned its year-end lame-duck session on December 22 after passing legislative fixes for several pending tax issues, including the estate tax, the expiration of the 2001 and 2003 tax cuts, an alternative minimum tax (AMT) patch, and extensions of many expired provisions. However, it failed to repeal the expanded Form 1099 reporting requirements that were enacted as part of this spring’s health care reform legislation.
Congress Sends Tax Cut Extension Bill to President
The House of Representatives late on December 16 by a vote of 277–148 passed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
Senate Approves Tax Cut Extender Bill
The Senate voted 81–19 in favor of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
Federal Court Rules Health Care Insurance Mandate Unconstitutional
A federal district court has held that the health care reform legislation’s mandate that individuals obtain health insurance is unconstitutional.
Final Regs Issued Requiring Uncertain Tax Position Disclosure Statement
The IRS issued final regulations requiring some corporations to file a Schedule UTP, disclosing their uncertain tax positions when filing a return.
Provisions in the Senate’s Tax Cut Extension Bill
Senate Majority Leader Harry Reid, D-Nev., introduced legislation on December 9 that would postpone the sunset of the 2001 and 2003 tax cuts, reduce the estate tax, and extend a number of expired provisions, as well as extending unemployment benefits.
Security Replaces Modernization as Top IRS Challenge
In its 2011 annual report, TIGTA said security is the top management challenge facing the IRS.
IRS Releases 2011 Standard Mileage Rates
The IRS released the standard mileage rates for use in 2011.
IRS Releases Form and More Guidance on Small Business Health Care Tax Credit
The IRS released a new form and guidance relating to the small business health care tax credit for the 2010 tax year.
Preparer Mandatory E-File Guidance Proposed
The IRS issued proposed guidance on how return preparers may meet their new electronic filing requirement for individual and fiduciary income tax returns starting January 1, 2011.
Shulman Urges Congress to Fix AMT and Extender Issues Before Year End
Commissioner Shulman urged Congress to pass tax legislation before the start of the next tax season. Shulman focused on the alternative minimum tax (AMT) patch and the extension of various income tax incentives for individuals.
IRS Provides Additional Relief Under Sec. 409A Document Failure Correction Program
The IRS issued further relief for nonqualified deferred compensation (NQDC) plans covered by Sec. 409A
Notice Gives Guidance on In-Plan Roth Rollovers
The IRS issued guidance on how plan participants can make rollovers from a 401(k) or 403(b) plan to a designated Roth account in the same plan.
SBA Supports Bill to Repeal “Burdensome” 1099 Filing Requirements
The head of the U.S. Small Business Administration called for the repeal of a vast expansion of Form 1099 filing requirements scheduled to begin in 2012.
New Rules Require Rental Property Owners to Issue 1099s
Owners of property who receive rental income will be required to issue Forms 1099 to service providers for payments of $600 or more during the year.
Annual Inflation Adjustments Released by IRS, Many Remain Unchanged
The IRS released its annual revenue procedure making inflation adjustments for various credits and other tax items for 2011.
IRS Provides PTIN Guidance for Preparers Without a Social Security Number
The IRS has provided a process for individuals without a Social Security number to obtain a preparer tax identification number (PTIN).
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
