The IRS on October 20 announced that it has opened its preparer tax identification number (PTIN) registration system to accept renewals for the 2012 filing season
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Final Regs. Eliminate Hot Stock Rule for Certain Reorganizations
The IRS issued final regulations that generally hold that the so-called hot stock rule is inapplicable in reorganizations where a subsidiary is a member of the distributing corporation’s separate affiliated group
Estate Tax Protective Claim Procedures Detailed
The IRS issued guidance on filing a protective claim for refund of estate tax and notifying the IRS that the claim is ready for consideration.
Trade Bills Pass Congress with Tax Provisions
The EITC due diligence penalty will increase to $500 under a bill passed by Congress Oct. 12.
TIGTA Finds Problems with IRS Purchase Cards, Network Security
TIGTA released a pair of reports finding problems with the security of the IRS Windows environment and a lack of control over IRS purchase cards.
Practitioners Raise Concerns About Fingerprinting Proposal at IRS Hearing
The IRS heard a consistent chorus at an October 7 hearing on proposed fees for fingerprinting of registered tax return preparers and nonsigning staff at CPA firms: The IRS’ proposal is duplicative, expensive, and can be done in a better way.
IRS Proposes Stiffer Preparer Requirements for EITCs
The IRS issued proposed regulations that would impose new requirements for tax return preparers and their firms for returns claiming the earned income tax credit (EITC), including submission of information regarding taxpayers’ eligibility to the IRS.
IRS Updates, Clarifies Travel Allowances, Reinstates High-Low Method
The IRS issued an update and new guidance for use of a federal per diem rate to substantiate the amount of ordinary and necessary expenses for lodging, meals and incidental costs paid or incurred for business-related travel away from home.
Estates Must File Form 706 to Make Portability Election
The IRS alerted executors of the estates of decedents dying after December 31, 2010, of the need to file a Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, within the time prescribed by law (including extensions).
IRS Issues Guidance on Fingerprinting, Other Registered Tax Return Preparer Details
The IRS provided more details September 22 of its still-developing requirements for all paid tax return preparers to be registered and undergo a background check, to include fingerprinting.
IRS Offers Voluntary Employee Reclassification Program
Employers may reclassify independent contractors as employees and limit the resulting federal payroll taxes for their most recent tax year, plus avoid related penalties and interest for prior years, under an IRS program announced September 21.
President Signs Patent Reform Bill Banning New Tax Strategy Patents
President Barack Obama signed into law the Leahy-Smith America Invents Act (H.R. 1249), which reforms the U.S. patent system and stops the granting of patents for tax strategies.
Guidance Issued on Tax Treatment of Business Cell Phones
The IRS issued a notice on September 14 providing guidance on the tax treatment of employer-provided cell phones now that they have been removed from the definition of listed property.
2010 Estate Tax Payment, Carryover Basis Election Extended
Executors of estates of most decedents who died in 2010 now can get an automatic extension until March 19, 2012, to pay any estate tax due as well as to file an estate tax return, the IRS announced on September 13.
President’s Jobs Bill Contains Many Tax Proposals
The president submitted his American Jobs Act to Congress on September 12, and among its provisions are several tax items, including a temporary payroll tax cut, a limit on itemized deductions for certain high-income taxpayers, and a proposal to tax carried interests as ordinary income rather than capital gains.
IRS Issues Accounting Software Examination Guidance, Meets with AICPA
The IRS Small Business/Self-Employed Division issued guidance for its field examiners on when to request backup files of taxpayers’ accounting software during an examination, what the limits are on reviewing those electronic files, and how examiners must safeguard those records.
Congress Passes Tax Patent Reform; Sends Bill to President
The Senate passed the America Invents Act which now goes to President Barack Obama for his signature. The act reforms the U.S. patent system, and among its provisions is one intended to stop the granting of patents for tax strategies.
Estate Tax Form, Instructions Finalized for 2010; Due September 19
The IRS posted the instructions for Form 706 for decedents dying in 2010. For most 2010 decedents, the due date is September 19.
Final Regs Implement Form 990 Changes
The IRS issued final regulations implementing extensive revisions made in 2008 to Form 990, Return of Organization Exempt from Income Tax.
IRS Proposes New Rules for Deducting Fiduciary Fees
The IRS issued proposed regulations intended to reflect the Supreme Court’s 2008 holding in Knight on income tax deductibility by estates and nongrantor trusts of investment advisory and other fees.
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.
