Qualifying accrual-basis taxpayers will be allowed to treat economic performance of certain service contracts as occurring on a ratable basis under a safe harbor introduced by the IRS.
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Tax Court Invalidates Stock-Based Compensation Rule in Cost-Sharing Agreements
The Tax Court held that Regs. Sec. 1.482-7(d)(2), requiring entities to share stock-based compensation costs under qualified cost-sharing agreements, failed to meet the reasoned decision-making standard and was invalid.
Regulations Provide Guidance on Proper Place to File Refund Claims
The new rules generally require taxpayers filing claims for refund or credit to file their claim with the IRS service center at which the taxpayers currently would be required to file a tax return for the type of tax to which the claims relate.
Proposed Rules Define Disguised Payments for Services in Partnerships
The IRS will apply a six-factor test to determine whether payments to partners are disguised payments for services under proposed regulations.
Revised Form 3115 Issued in Draft Form
The IRS has posted a draft revised version of Form 3115, Application for Change in Accounting Method, on its website.
Majority of CPAs Polled Had Clients Victimized by Tax ID Theft This Year
Many CPAs reported it was difficult or very difficult to resolve the issue with the IRS, echoing recent findings by the Taxpayer Advocate Service.
National Taxpayer Advocate: IRS Falling Down on the Job of Helping Identity Theft Victims
During some of the busiest weeks of tax season, less than one caller in 10 to the IRS’s Taxpayer Protection Program phone line was able to reach IRS staff for assistance, according to Nina Olson, the national taxpayer advocate.
Emerging Tax Issues Cause Due-Diligence Problems
From foreign accounts to health care, from marijuana businesses to captive insurance, emerging tax issues are presenting practitioners with thorny due-diligence problems.
Defined Benefit Plans to Be Prohibited From Replacing Annuities With Lump-Sum Payments
The IRS announced that it will amend the Sec. 401(a)(9) required minimum distribution regulations to prohibit the use of lump-sum payments to replace annuity payments in defined benefit plans.
Notice Clarifies Provider List Rules for Charitable Hospital Financial Assistance Policies
The IRS clarified the requirement in Regs. Sec. 1.501(r)-4(b)(1)(iii)(F) that a charitable hospital organization include a provider list in its financial assistance policy.
Congress Makes Changes to Tax Code in Trade Preferences Act
The Trade Preferences Extension Act of 2015 contains tax provisions in addition to the trade measures that were the focus of the bill.
Supreme Court Upholds Health Insurance Subsidies in Federal Exchanges
The Supreme Court upheld the availability of premium tax credits under Sec. 36B when they are provided through health exchanges run by the federal government.
Proposed Rules for ABLE Accounts for the Disabled Are Issued
The IRS issued proposed regulations implementing Sec. 529A, which authorizes states to offer specially designed tax-favored accounts for the disabled (ABLE accounts).
IRS Issues Guidance for Multiemployer Plans to Apply For Benefit Suspension Approval
The IRS issued temporary and proposed regulations that provide guidance for multiemployer pension plans that are in critical and declining status and therefore may be permitted to suspend benefits under the Multiemployer Pension Reform Act of 2014.
IRS Issues Final Portability Rules for Estate Tax Exemptions
The IRS issued final rules governing the requirements for electing portability of a deceased spousal unused exclusion amount to the surviving spouse and the rules for the surviving spouse’s use of the amount.
Tax Industry and IRS Team Up to Fight Identity Theft Refund Fraud
Tax software vendors will share analytical information about their customers’ tax filings with the IRS under new agreement announced by the IRS.
IRS: Corporations Cannot Circumvent Gain on Appreciated Property Using Partnerships
The IRS issued regulations that take aim at transactions that attempt to avoid the repeal of the General Utilities doctrine.
Bright-Line Test Determines Substantial Business Activities Under Inversion Rules
Final regulations were issued for determining when an expanded affiliated group will be considered to have substantial business activities in a foreign country, which allows a foreign corporation to escape application of the inversion rules.
Expanded IRS Online Services Put Taxpayer Information at Risk, Senate Committee Told
By expanding its online services, the IRS is putting taxpayers’ data at greater risk, the Treasury Inspector General for Tax Administration told Congress.
New Accounting Method Change Procedures Give More Time to File Form 3115
Taxpayers affected by the tangible property regulations will have more time to file Form 3115 under Rev. Proc. 2011-14 according to revised procedures issued by the IRS.
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.
