Tax News - The Tax Adviser

June 29, 2023

Research finds algorithms, unscrupulous preparers behind audit bias

Subsequent research has replicated the racial gap in audit rates found in a study led by Stanford University and pointed to both unscrupulous tax preparers who submit EITC claims and algorithmic bias in the IRS’s audit selection process as causes.

June 23, 2023

COVID-19 coverage without a deductible ends next year

A high-deductible health plan will no longer be permitted to provide coverage without a deductible for testing for and treatment of COVID-19 after Dec. 31, 2024.

June 22, 2023

Taxpayer advocate: 2023 tax season better at IRS; IT upgrades imperative

In her annual midyear report to Congress, National Taxpayer Advocate Erin Collins says the difference between the 2022 and 2023 tax seasons was “like night and day.”

June 16, 2023

IRS updates list of automatic accounting method changes

The IRS on Thursday provided a comprehensive, updated list of changes in tax accounting methods to which the automatic change procedures in Rev. Proc. 2015-13 apply. The list includes 29 changes that the Service describes as significant.

June 14, 2023

IRS addresses whether college NIL collectives further an exempt purpose

A memo from the IRS Office of Chief Counsel advises that an organization that develops paid NIL opportunities for student-athletes will, in many cases, be operating for a substantial nonexempt purpose—serving the private interests of student-athletes—which is more than incidental to any exempt purpose furthered by the activity.

June 8, 2023

Penalty for underpayment of estimated corporate AMT waived for 2023

The IRS waived the penalty for corporations that did not make estimated payments of corporate AMT for their 2023 tax year, saying the move is “in the interest of sound tax administration.”

June 7, 2023

National taxpayer advocate: A paperless IRS is possible

NTA Erin Collins said at AICPA & CIMA ENGAGE 2023 that the IRS has a goal of being “paperless” by 2025, by which it means anything taxpayers file on paper would be scanned.

June 6, 2023

IRS revises actuarial tables to account for most recent mortality data

The IRS issued final regulations revising actuarial tables to reflect mortality data from the 2010 Census.

June 1, 2023

A pandemic-era tax break that remains rife with abuse — the ERC

The IRS issues at least its seventh warning about the employee retention credit since October 2022.

May 24, 2023

AICPA backs bill to make it easier to file for tax extensions

The bill filed by Reps. Judy Chu and Mike Carey would streamline the extension-filing process for millions of Americans.

May 23, 2023

Supreme Court upholds exception to notice requirement for third-party summonses

In a unanimous decision, the Court held that the IRS does not have to notify third parties named in a summons when it seeks access to records held at institutions such as banks in aid of collection of a tax assessment.

May 17, 2023

HSA amounts continue trend, increase again in 2024

The 2024 amounts from the IRS mark at least the ninth annual increase in a row for maximum contributions.

May 16, 2023

IRS chief: Racial disparities in audits will be addressed within a year

In his response to a university study showing racial differences in audit rates, IRS Commissioner Danny Werfel says in a letter to senators that the agency is investigating the cause of any discrepancies.

May 16, 2023

AICPA joins coalition to increase awareness of new BOI requirement

Under the requirement, most companies created in or registered to do business in the United States must report their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network.

May 12, 2023

AICPA supports extending mailbox rule to electronic filing and payments

The Electronic Communication Uniformity Act, recently introduced in the Senate, would apply the timely mailing/timely filing rule to electronic tax return filings and payments. The AICPA has written to the sponsors of the bill expressing support.

May 11, 2023

IRS backlog lessens; agency plans to resume collection notices

The IRS said all returns received for tax year 2021 or earlier have been processed if the returns had no errors or did not require further review.

May 8, 2023

Black CPAs: IRS must end higher audit rates for Black taxpayers

Black CPAs react to study led by Stanford University showing the IRS is up to 4.7 times more likely to audit Black taxpayers than non-Black ones, saying the tax system must be fairer.

May 2, 2023

Proposed regs. provide rules for repatriation of intangible property

The regulations would terminate the continued application of the Sec. 367(d) annual inclusion in certain cases when intangible property is repatriated to the United States after previously being transferred to a foreign corporation.

May 1, 2023

IRS returns to in-person public hearings; telephone still an option

With COVID-19 no longer considered a national emergency, the IRS will return to public hearings for proposed regulations published in the Federal Register beginning in May while keeping telephone access as an option.

April 21, 2023

Werfel: IRS will audit individuals under $400K at 2018 rates

The new IRS commissioner tells the Senate Finance Committee the rate will be taken from the 2018 data because that’s the most recent year for which the IRS has final audit numbers.