Tax News - The Tax Adviser

August 11, 2023

Location of millions of tax records uncertain, TIGTA says in IRS critique

The Treasury Inspector General for Tax Administration said the IRS is uncertain of the location of microfilm cartridges with tax information of both individuals and businesses.

August 8, 2023

Update on states moving ahead with PTETs

States continue to move ahead with implementing new passthrough entity taxes as a workaround to the $10,000 cap on the federal deduction of state and local taxes.

August 7, 2023

Proposed regulations update, revise consolidated return regulations

New proposed regulations would update the regulations to reflect 50-plus years of statutory changes, remove regulations and certain transition rules that no longer have practical application, and eliminate obsolete or incorrect terms and cross-references.

August 7, 2023

IRS issues guidance on requirements for home energy audits

The IRS provides requirements for home energy audits for taxpayers that want to claim the energy efficient home improvement credit, which taxpayers can rely on until proposed regulations are issued.

August 7, 2023

Prop. regs. identify monetized installment sales as listed transactions

The IRS disagrees with court decisions requiring notice-and-comment rulemaking to identify listed transactions, but said it is identifying monetized installment sales transactions as listed transactions in proposed regulations “to avoid confusion and ensure consistent enforcement of the tax laws throughout the nation to prevent disruption of the IRS’s ongoing efforts to identify and examine abusive tax shelters.”

August 4, 2023

2024 filing season could be paperless, IRS says

Treasury and the IRS announced Wednesday that by filing season 2024, taxpayers will be able to go paperless if they choose to do so. And by filing season 2025, the IRS will digitize all paper-filed returns when they are received.

August 1, 2023

Proof-of-stake validation rewards are income in tax year received

The IRS ruled Monday that cash-method taxpayers who stake cryptocurrency native to a proof-of-stake blockchain and receive cryptocurrency validation rewards must include the fair market value of the rewards in gross income in the year they are received.

August 1, 2023

2023 tax software survey

CPAs assess how their return preparation products performed.

July 28, 2023

To combat fraud, IRS steps up ERC claim enforcement

Having made significant progress in the ongoing effort against fraudulent employee retention credit claims, IRS Commissioner Danny Werfel said the agency has entered a new phase of increasing scrutiny on dubious submissions while renewing consumer warnings against aggressive marketing.

July 27, 2023

AICPA advocates for delay in BOI reporting requirements

Too many businesses are unaware of the beneficial ownership information reporting requirements, which will be a burden for small businesses, the AICPA told Congress.

July 26, 2023

Final regs. allow assessment of COVID-19 related tax credit refunds

The IRS issues final regulations that allow for the assessment of erroneous refunds of COVID-19 related paid sick leave, family leave, and employee retention credits.

July 25, 2023

IRS ends most unannounced revenue officer visits

IRS Commissioner Danny Werfel on Monday announced an end to unannounced home visits by IRS revenue officers, except in a few cases. The change is effective immediately.

July 24, 2023

Scams are surging in the summer, the IRS says

The IRS issued a warning for taxpayers to be wary of offers promising tax refunds or to “fix” tax problems, saying these emails or texts are part of a summer surge in tax scams.

July 20, 2023

At the ripe old age of 21, he’s advising the IRS on change

Aidan Hunt was appointed at age 20 to the IRS Advisory Council, a panel that advises the IRS commissioner and recommends administrative and policy changes.

July 18, 2023

IRS provides transition relief for change in beginning date for RMDs

A notice provides transition relief for the change in the required beginning date for required minimum distributions (RMDs) under the SECURE 2.0 Act and guidance related to certain specified RMDs.

July 17, 2023

Commissioner: We are progressing toward a user-friendly IRS

IRS Commissioner Danny Werfel said the Service’s transformation is in full swing, thanks to new infusion of cash that he says needs to keep coming.

July 14, 2023

How the IRS can avoid tax deadline confusion in disaster areas

The national taxpayer advocate recommended changes that range from one simple one the IRS can handle on its own to congressional action.

July 12, 2023

Prop. regs. clarify tax treatment of certain health insurance payments

New proposed regulations clarify that accident or health insurance payments are not excludable from an employee’s income where the payments are made without regard to amount of medical expenses incurred by the employee under Sec. 213(d) and the premiums or contributions for coverage are paid on a pre-tax basis.

July 5, 2023

Study: Deterrence a major factor in bringing in more money from IRS audits

The paper by researchers at Harvard University, the University of Sydney, and Treasury finds that an additional $1 spent on marginal audits of top earners can get a return of $12 in revenue.

June 30, 2023