The immediate planning opportunity for CRTs is to harvest short-term and long-term capital losses. Here is how it works and what changed from earlier years.
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IRS Releases Rules for In-Plan Rollovers of Roth Accounts
The IRS released rules in question and answer format for in-plan rollovers to designated Roth accounts in retirement plans.
Final Rules Permit Agents to Withhold FUTA for Home Care Service Recipients
The IRS issued final regulations permitting an agent authorized by the IRS under Sec. 3504 to perform certain acts normally required of employers to withhold FUTA taxes owed by home care service recipients.
Standard Mileage Rates Go Down Slightly in 2014
The optional standard mileage rates for use of a vehicle will go down by one-half cent per mile for 2014, the IRS announced.
Proposed Rules Would Require Terminating Partnerships to Amortize Startup Expenditures
The IRS issued proposed regulations aimed at preventing partnerships from using technical terminations to accelerate their deductions of startup and organizational expenses.
Numerous Provisions Expire at Year End
Practitioners should be aware that dozens of credits and other tax incentives are expiring Dec. 31 and should prepare their clients accordingly.
Supreme Court Resolves Circuit Split on 40% Gross Valuation Misstatement Penalty
The Supreme Court held that the 40% penalty for a gross valuation misstatement applied when the partnerships at issue had been determined to be shams that lacked economic substance, and, as a result, the partners’ outside basis in the partnerships was zero.
Final and Proposed Regs. Issued on 3.8% Net Investment Income Tax
The IRS issued final and proposed regulations giving guidance on the application and computation of the 3.8% net investment income tax imposed by Sec. 1411.
Final Rules Released on 0.9% Medicare Surtax
The IRS issued final regulations governing the 0.9% Medicare surtax. The regulations contain guidance for employers and individuals on the implementation of the tax.
IRS Proposes Curbing Political Activities of Sec. 501(c)(4) Social Welfare Organizations
The IRS announced its intention on Tuesday to amend the regulations governing social welfare organizations, a topic that has recently created an enormous amount of political controversy.
TIGTA Report Says IRS Should Do a Better Job Protecting Taxpayer Data
The IRS does not do a good job of correcting security weaknesses, thereby failing to protect taxpayer data, TIGTA concluded in a report released Thursday.
Accounting for Income Taxes Standard Achieves Purpose, Panel Finds
A review panel has concluded FAS 109, addressing accounting for income taxes, generally achieves its purpose but may not have reduced complexity.
For Penalty Calculation, Amount of Tax Shown on Return Reduced by Credits, Tax Court Holds
The Tax Court held that the amount of tax shown on the taxpayers’ return was reduced by refundable credits, but not below zero, for purposes of calculating the Sec. 6662(a) accuracy-related penalty.
United States and France Sign FATCA Agreement
The Treasury Department announced on Thursday that the United States and France have signed a bilateral agreement requiring French banks to report to the French government information about their U.S. account holders.
Regs. Permit Midyear Changes to Employer Contributions 401(k) Plans
The IRS issued final regulations that permit employers to make midyear reductions or suspensions of safe-harbor matching or nonelective contributions to retirement plans in certain situations.
Tax Return Preparers Suspected of Filing Inaccurate EITC Claims to Be Targeted by IRS
The IRS announced in an email to tax practitioners that it will send letters in November and December to return preparers “suspected of filing inaccurate EITC claims.”
Permanent Injunction Closes Large Tax Preparation Firm
A federal district court in Ohio has issued a permanent injunction ordering ITS Financial LLC, the parent company of Instant Tax Service tax franchiser, to cease operations.
IRS Extends Fast-Track Settlement to Smaller Businesses Nationwide
Formerly available only to large and midsize businesses and in a geographically limited pilot program for smaller entities, the IRS’s Fast Track Settlement program is now available to smaller businesses nationwide, the IRS announced.
Health FSA Use-It-Or-Lose-It Rule Modified to Allow a $500 Carryover
The IRS will now permit companies to amend their cafeteria plans to allow participants in health FSAs who do not use all of the money in a plan year to use up to $500 in the next plan year, in addition to the regular $2,500 limit during the succeeding year.
PTIN Renewal System Reopens
Two weeks after the end of the government shutdown, the IRS reopened its registration system for renewing preparer tax identification numbers (PTINs) for the 2014 filing season.
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.
