The IRS has issued regulations under Sec. 7216 that increase the circumstances in which tax return preparers can disclose or use certain limited tax return information and two revenue rulings that provide guidance to tax return preparers on situations in which they will not be liable for civil or criminal penalties under Sec. 7216 for disclosing or using tax return information.
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IRS Practice & Procedure
NOL Carryback Claims Can Unlock Closed Statute of Limitation Years
With the introduction of the five-year net operating loss (NOL) carryback in Sec. 172(h) as part of the Worker, Homeownership, and Business Assistance Act of 2009, taxpayers should consider the impact that carrying back an NOL has on the assessment statute of limitation.
The IRS Whistleblower Program
The IRS’s new whistleblower program and the efforts to publicize it have already generated many new claims. Given the significant awards that are now available under the program, the number of claims is likely to increase, making it important for practitioners to be familiar with the program and its rules
Tax Court Does Not Have Jurisdiction to Redetermine Sec. 6707A Penalties
The Tax Court held that it did not have jurisdiction to redetermine a taxpayer’s liability for Sec. 6707A penalties for failure to report involvement in a listed transaction.
IRS Pilot Program Will Allow Truncated Social Security Numbers on Information Returns
The IRS announced a pilot program aimed at deterring identity theft. Under the program, filers of certain paper information returns will be allowed to truncate the payee’s Social Security number on the payee statement.
Final Regs. Update Rules on PayingTax in Installments
The IRS issued final regulations governing the payment of tax liabilities in installments (T.D. 9473). The regulations reflect changes to the law made by various acts going as far back as 1996.
IRS Initiatives Could Change Compliance Landscape in 2010
During the latter part of 2009, the IRS announced a number of new compliance initiatives that, when fully implemented, have the potential to dramatically alter the way the IRS deals with certain groups of taxpayers.
Request for Audit Reconsideration
Sec. 6404(a) allows the IRS to abate any assessment of tax and applicable interest and/or penalties if the assessment is excessive, erroneously or illegally made, or made after the statute of limitation has expired. If an erroneous assessment has been made and a taxpayer has not paid it, under certain circumstances the IRS may accept a request for audit reconsideration.
IRS Workforce Initiative
To prepare for the future, the IRS has established a Workforce of Tomorrow task force, with six areas of focus.
Homebuyer Credit, NOL Carrybacks Extended; Mandatory E-Filing Enacted
The Worker, Homeownership, and Business Assistance Act of 2009 contains a handful of tax provisions. These include changes to the first-time homebuyers’ credit, increased NOL carrybacks for small businesses, and mandatory e-filing for most tax return preparers.
Obtaining a Power of Attorney Through IRS E-Services
E-services is a suite of internet-based products that allows tax professionals to conduct client business with the IRS 24 hours a day, 7 days a week.
New Directives from the LMSB
The IRS Large and Mid-Size Business (LMSB) Division has issued several new directives related to issues targeted under its issue-tiering strategy.
Making Work Pay Credit Withholding for Nonresident Aliens
The IRS has issued guidance on determining the amount of income tax employers must withhold from wages for services performed by nonresident alien employees within the United States (Notice 2009-91).
Definition of Omission from Gross Income for Partnership Items and the Six-Year Period for Assessing Tax
The IRS has issued temporary and proposed regulations defining an omission from gross income for purposes of the six-year minimum period for assessment of tax attributable to partnership items and the six-year period for assessing tax.
Commissioner Announces High-Wealth Taxpayers Group
IRS Commissioner Douglas Shulman addressed the AICPA’s National Tax Conference in Washington, DC, on October 26. During his speech, Shulman announced the formation of a global high-wealth industry group within the IRS’s Large and Mid-Size Business (LMSB) division. This group will centralize and focus the IRS’s compliance efforts involving high-wealth
FBARs and Not-Yet-Reported Offshore Income: Penalties and Practitioners’ Issues
This item considers (1) options available for the client that did not disclose under the IRS’s voluntary disclosure program, which ended October 15, 2009; (2) practitioners’ responsibilities, including tax organizers and engagement letters; and (3) items suspended and/or extended to the June 2010 due date.
Assessing Professional Tax Advice and Taxpayer Sophistication
This article investigates the courts’ interpretation of reasonable cause and good faith in circumstances where the IRS has imposed a negligence penalty.
An Overview of IRS Electronic Payment Options
With the e-filing of tax returns becoming more and more prevalent, practitioners and their clients should also take advantage of other electronic services that the IRS has introduced in recent years.
U.S.-Source FDAP Income Compliance Designated as Tier 1 Issue
The IRS has designated the obligation of U.S. withholding agents to report and withhold on U.S.-source fixed or determinable annual or periodic (FDAP) income as a Large and Mid-Size Business (LMSB) Division Tier 1 issue.
FBAR Extended for Certain Persons
Any U.S. person who has a financial interest in or signature authority over foreign bank accounts, the maximum value of which in aggregate is over $10,000 at any time during a year, must file a Form TD F 90.22-1, FBAR, by June 30 of the following year. Recent changes to the FBAR instructions had left taxpayers and practitioners with questions about who is required to file the form.
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.
