The Senate and the House of Representatives on December 23 both agreed by unanimous consent to extend the reduced rate, and President Barack Obama signed the bill the same day.
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Many Tax Provisions Set to Expire at Year End
Congress’ negotiations over an extension of the reduced payroll tax rate have garnered a lot of media attention, but many other tax items are scheduled to expire at the end of the year, and any future extension of these expiring provisions will have to be retroactive.
IRS PTIN Application System to Go Down for Maintenance
The IRS announced it will not accept new applications for PTINs from 5 p.m. EST Friday, December 23, until approximately 6 a.m. EST on Monday, January 9.
Foreign Financial Asset Reporting Form Finalized
The IRS released the final version of Form 8938, Statement of Specified Foreign Financial Assets, and its instructions.
Final Regs on EITC Due Diligence Issued
The IRS issued final regulations governing the due-diligence requirements imposed on tax return preparers who prepare tax returns on which taxpayers claim the earned income tax credit.
Some Form 990 Filers Have Extension to March 30
The IRS extended the filing deadline for Form 990 until March 30, 2012, for many tax-exempt organizations with a filing due date during the first two months of the new year.
Regulations Issued on Continuity of Interest Rule for Corporate Reorganizations
The IRS issued final and proposed regulations on the continuity of interest (COI) requirement in Sec. 368 corporate reorganizations.
Regulations Issued for Specified Foreign Financial Assets Reporting
The IRS issued temporary and proposed regulations on the requirement that certain foreign financial assets be reported to the IRS for tax years beginning after March 18, 2010.
Recurring-Item Exception Clarified
The IRS issued a revenue ruling to clarify the application of the all-events test’s recurring-item exception under Sec. 461(h)(3) to certain fact patterns. The ruling addresses questions that arise when a liability accrues over more than one year or under a service contract.
Transit Pass and Vanpool Benefits to Shrink in 2012
The monthly tax exclusion for employer provided transit pass and vanpool benefits will shrink to $125 in 2012, from the current $230, when the provision providing for parity with employer-provided parking benefits expires at the end of this year.
IRS Reminds Dual Citizens and Americans Living Abroad of FBAR, Other Filing Requirements
In a fact sheet, the IRS reminded U.S. citizens and dual citizens of the United States and foreign countries who live abroad about U.S. filing requirements.
Standard Mileage Rates for 2012 Released
The IRS released standard mileage rates for use in 2012.
IRS Holds First Hearing on Real-Time Tax System
The IRS held a public hearing to gather feedback on how to implement a system in which the IRS would match information on tax returns with data from third-party information returns during the processing of the return.
Final Regs. Issued on Low-Income Community Businesses and New Markets Tax Credit
The IRS issued final regulations on how entities serving certain targeted populations can qualify as active low-income community businesses for purposes of the Sec. 45D new markets tax credit
IRS Proposes New Treatment of LLC Members, Limited Partners Under Passive Loss Rules
The IRS issued proposed regulations that would redefine “interest in a limited partnership as a limited partner” for purposes of determining material participation under the Sec. 469 passive loss rules.
IRS Launches New Round of Preparer Office Visits
The IRS has sent letters to tax return preparers whom the IRS has identified as at high risk of not complying with their responsibilities as return preparers. The IRS will follow up with office visits to some of these preparers who appear to have serious compliance issues.
Competency Testing for Registered Tax Return Preparers Set to Start
As part of its ongoing initiative to regulate previously unenrolled tax return preparers, the IRS announced on November 22 that competency testing for registered tax return preparers will start next week.
President Signs Government Contractor Withholding Repeal, Veterans Job Credits
The president signed into law the Three Percent Withholding Repeal and Job Creation Act.
Temporary Regs. on All-Cash D Reorgs Issued
The IRS issued temporary and proposed regulations governing the determination of the basis of stock or securities in a corporate reorganization when the issuing corporation does not distribute any stock or securities in the reorganization.
IRS Reissues Alternative Valuation Date Proposed Regulations
The IRS issued new proposed regulations on electing an alternate valuation date for an estate and withdrew earlier ones released in 2008.
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.
