The IRS issued its first guidance on the newly codified economic substance doctrine.
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TOPICS
IRS Practice & Procedure
Small Business Jobs and Tax Bill Enacted
The Small Business Jobs Act of 2010 expands loan programs through the Small Business Administration, strengthens small business preference programs for federal government projects, provides incentives for exporters, offers a variety of small business tax breaks, and includes some revenue raisers.
Final Regs. on Stock Basis Reporting Requirements
The IRS issued final regulations regarding a new requirement for reporting basis and other information by stockbrokers and mutual fund companies for most stock purchased in 2011 and all stock purchased in 2012 and later years.
The HIRE Act of 2010
In March 2010, Congress enacted the Hiring Incentives to Restore Employment Act, which includes provisions to encourage employers to hire new employees and to make new capital investments. This article discusses these new incentives, as well as the revenue-raising provisions included in the act to offset their cost.
Shulman Urges Congress to Fix AMT and Extender Issues Before Year End
Commissioner Shulman urged Congress to pass tax legislation before the start of the next tax season. Shulman focused on the alternative minimum tax (AMT) patch and the extension of various income tax incentives for individuals.
SBA Supports Bill to Repeal “Burdensome” 1099 Filing Requirements
The head of the U.S. Small Business Administration called for the repeal of a vast expansion of Form 1099 filing requirements scheduled to begin in 2012.
New Rules Require Rental Property Owners to Issue 1099s
Owners of property who receive rental income will be required to issue Forms 1099 to service providers for payments of $600 or more during the year.
Revised LMSB Examiner Procedures for Tax Preparer Penalty Cases
This item discusses the continuing trend of shifting accountability for tax return compliance to return preparers by raising preparer conduct standards, broadening the definition of tax return preparers, and increasing preparer penalties for violations.
District Court Rules That Same-Sex Married Couples May File Joint Returns
This item discusses the impact of a recent case in Massachusetts in which a federal district court held that Section 3 of the Defense of Marriage Act is unconstitutional because it violates the equal protection principles of the Fifth Amendment’s Due Process clause.
D.C. Circuit Finds Work Product Protection Not Waived by Disclosure to Independent Auditors
The D.C. Circuit denied an IRS motion to obtain documents in connection with ongoing tax litigation affirming in part a district court’s holding that a company did not waive work product protection when it disclosed certain documents to its auditor.
IRS Expands Use of Electronic Payments, Discontinues Paper Coupons
The IRS has issued proposed regulations that would eliminate paper coupons for deposits of employment taxes, corporate income and estimated taxes, and many other taxes.
IRS Finalizes Regs. on Tentative Carryback Adjustments
The IRS released final regulations under Sec. 6411 providing guidance on the computation and allowance of tentative carryback adjustments (tentative refunds). This item outlines the contents of those regulations.
Annual Inflation Adjustments Released by IRS, Many Remain Unchanged
The IRS released its annual revenue procedure making inflation adjustments for various credits and other tax items for 2011.
IRS Provides PTIN Guidance for Preparers Without a Social Security Number
The IRS has provided a process for individuals without a Social Security number to obtain a preparer tax identification number (PTIN).
IRS Commissioner Predicts Relief From Testing and Continuing Education for CPA-Supervised Nonsigning Preparers
The IRS will likely provide relief from testing and continuing education requirements for nonsigning tax preparers working under the supervision of a CPA or other federally authorized tax practitioner, such as an attorney or enrolled agent, in a CPA or other professional firm, IRS Commissioner Doug Shulman said October 26.
IRS Issues Final Regulations on Stock Basis Reporting Requirements
The IRS issued final regulations regarding a new requirement for reporting of basis and other information by stockbrokers and mutual fund companies.
AICPA VP Testifies on Changes Needed to IRS Return Preparer Regulation Plan
Edward Karl, the AICPA’s Vice President–Taxation, testified at an IRS hearing about proposed amendments to Circular 230 that would put into place many of the parts of the IRS’ plan to register and regulate tax return preparers.
IRS Auditing Through QuickBooks
The IRS has provided QuickBooks accounting software training to its Small Business/Self-Employed (SB/SE) division examiners.
National Taxpayer Advocate Warns of IRS Mission Expansion
In the introduction to her recent report to Congress, IRS National Taxpayer Advocate (NTA) Nina Olson warns that recent expansion of the IRS mission is straining some of its core capabilities.
IRS Issues Interim Report on the Colleges and Universities Compliance Project
The IRS recently issued an interim report on the Colleges and Universities Compliance Project that was initiated by the Exempt Organizations (EO) function of the Tax Exempt and Government Entities (TE/GE) division.
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.
