A federal court granted summary judgment and issued an injunction to prevent the IRS from regulating contingent fee arrangements for the preparation and filing of ordinary refund claims under Circular 230.
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Effective Date of Fiduciary Fee Unbundling Rules Delayed Until 2015
The new rules governing which costs of trusts and estates are subject to the 2% floor on miscellaneous deductions now apply to tax years beginning after Dec. 31, 2014, rather than to tax years beginning on or after May 9, 2014.
Partnership Interest Expense Allocation Rules Are Finalized
Final regulations make permanent four changes to the rules for allocating and apportioning interest expense for partners in partnerships.
AICPA Sues IRS to Stop Return Preparer Program
The AICPA filed suit in the U.S. District Court for the District of Columbia, asking the court to halt the IRS’s recently introduced Annual Filing Season Program.
Fighting Identity Theft, IRS Issues Final Rules on Truncated Identification Numbers
Final regulations allow the use of truncated taxpayer identification numbers on payee statements and certain other documents where not prohibited by the Code, applicable regulations, or other guidance published in the Internal Revenue Bulletin, forms, or instructions.
One-IRA-Rollover-a-Year Rule Will Be Effective in 2015, IRS Says
The IRS withdrew proposed regulations that provided that the one-rollover-per-year rule for IRAs applies on an IRA-by-IRA basis.
E-filing of Amended Returns, Elimination of Form 1040X Among TIGTA Recommendations
Taxpayers should be allowed to use Form 1040 to amend their returns and should be able to e-file amended returns, according to recommendations made by the Treasury Inspector General for Tax Administration.
Limit on Direct Deposit of Refunds Will Go Into Effect in 2015
Beginning in January 2015, the IRS will impose a limit of three electronic direct deposits of tax refunds into a single financial account or prepaid debit card.
Streamlined Tax-Exempt Application Process Introduced
The IRS introduced a streamlined application process for small organizations that want tax-exempt status under Sec. 501(c)(3).
Unused ITINs Will Expire After Five Years Under New IRS Policy
The IRS announced a new: ITINs that are not being used will expire after five years. The policy will go into effect in 2016.
IRA, Qualified Plan Participants Can Purchase Longevity Annuities
Final regulations issued permit IRA and qualified plan participants to enter into longevity annuities, using a certain amount of their account balances, without having these amounts count for calculating required minimum distributions.
Complete Rules for the IRS’s Voluntary Return Preparer Certification Program Are Released
The IRS published guidance introducing its new, voluntary Annual Filing Season Program, which permits tax preparers who are not CPAs, attorneys, or enrolled agents to complete tax education requirements and receive a certificate
Regulations Provide Guidance for Small-Employer Premium Tax Credit
The IRS issued final regulations on the Sec. 45R credit for small employers that offer health insurance coverage for employees.
IRS Reveals Details of Voluntary Preparer Certification Program
The IRS announced that it will soon introduce a voluntary program for tax return preparers called the Annual Filing Season Program.
Final Rules Involve Disregarded Entities, Indoor Tanning Tax, and FICA and FUTA Exemptions
The IRS finalized rules on the disparate topics of disregarded entities that collect the excise tax on indoor tanning and how certain exceptions from FICA and FUTA taxes work when a disregarded entity is involved.
AICPA Reiterates Its Strong Concerns About IRS Voluntary Certification Program
The AICPA sent a letter to the IRS, expressing its strong concerns that a proposed IRS voluntary certification program for unenrolled tax return preparers “would cause significant legal problems that may ultimately frustrate the IRS’s goals, confuse the public, and lead to litigation.”
New Rules Allow One-Month Orientation Period Before 90-Day Health Plan Waiting Period Begins
Final regulations govern the maximum length of time an employee orientation period can last consistent with the 90-day waiting period under the Patient Protection and Affordable Care Act, which prohibits employers from requiring new employees to wait more than 90 days before they are eligible for health insurance coverage.
New Streamlined Procedures and Changes to the Offshore Voluntary Disclosure Program Are Announced
The IRS announced changes to its streamlined filing compliance procedures and its Offshore Voluntary Disclosure Program designed to make it easier for taxpayers to comply with their obligations to report offshore assets and accounts.
Supreme Court Issues Decision on IRS Summons Enforcement
A Supreme Court decision allows individuals to question IRS employees regarding their reasons for issuing a summons if the individual can point to specific facts that plausibly raise an inference of bad faith on the part of the IRS employee.
Supreme Court Holds Inherited IRAs Are Not Retirement Funds
The U.S. Supreme Court held that funds from an inherited IRA were not retirement funds that were exempt from the debtor’s bankruptcy estate.
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.
