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IRS Practice & Procedure

Temp. Regs. Expand IRS Offset Authority

The IRS has issued temporary regulations under Sec. 6411 relating to the computation and allowance of tentative carryback adjustments (i.e., tentative refunds).

Circular 230 Conflicts of Interest

This item highlights the requirements of Circular 230 §10.29 and the new client consent standard and addresses how the new standard may affect practitioners and clients.

IRS Expands Its Offset Authority

The Service has published guidance that expand its ability under Sec. 6402(a) to offset overpayments against tax liabilities and its ability under Sec. 6411(b) to apply tentative carryback allowances against unpaid tax liabilities.

IRS Cracking Down on Government Settlements

The IRS’s Large and Mid-Sized Business Division has issued an Industry Director Directive to its employees on the deductibility of settlement payments made under a settlement with the Department of Justice for violations of the Fair Claims Act and the Environmental Protection Agency for supplemental or beneficial environmental projects.

Tax Court Holds That IRS Litigation Memos Are Protected Work Product

The Tax Court held that the IRS did not have to turn over memos prepared by IRS personnel during the course of litigation because the memos were protected by the work-product privilege and the IRS had not waived the privilege with respect to the documents. Background Thomas and Bonnie Ratke

Service Phases Out Old EFTPS Software

The Electronic Federal Tax Payment System (EFTPS) allows payment of all federal taxes—including income, employment, estimated, and excise taxes—by phone, online, or through the use of special software. The Service recently announced that it will stop accepting EFTPS payments through two obsolete software interfaces. A legacy dial-up version of the

District Court Holds That Tax Accrual Workpapers Are Privileged Documents

A district court in the First Circuit held that a corporation did not have to turn over tax accrual workpapers to the IRS because the work-product privilege applied to the workpapers. The court also found that the attorney-client and tax-practitioner privileges could have applied to the workpapers, but the corporation

Practical Considerations for the New Paid Preparer Penalty Rules and FIN 48

Editor: Michael D. Koppel, CPA, PFS Return preparers have recently become subject to new, higher standards from two sources: Congress and the Financial Accounting Standards Board (FASB). This item compares the new “more likely than not” standard and explores the pitfalls that CPAs may encounter under FIN 48 and the

IRS Proposes Adding Patented Transactions to List of Reportable Transactions

In September 2007, the Service issued proposed regulations that would add patentable transactions to the categories of reportable transactions under Regs. Sec. 1.6011-4, which requires taxpayers who engagein certain reportable transactions to file a disclosure statement using Form 8886, Reportable Transaction Disclosure Statement. The U.S. Patent Office has recently started

IRS Announces Its Nonacquiescence to Roxworthy Decision

The IRS issued an action on decision (AOD) announcing its nonacquiescence to the Sixth Circuit’s decision in Roxworthy, 457 F3d 590 (6th Cir. 2006). In that case, the Sixth Circuit held that certain memos a corporation received from an outside accounting firm were privileged under the work-product privilege. In the

Advisers Beware: The Cost of Being Sued Is Going Up

This article explores the circumstances surrounding the awarding of interest on unpaid tax liabilities in malpractice cases. It analyzes the prior case law, discusses the decisions in two recent cases, and considers the future treatment of interest in accounting malpractice suits.

Final and Prop. Regs. Amend Circular 230

On September 26, 2007, the IRS released final and proposed regulations (TD 9359 and REG-138637-07) amending Circular 230, Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and Appraisers Before the Internal Revenue Service. The Service published proposed Circular 230 regulations in February 2006 (REG-122380-02). The

Collection Due Process Hearing Regs. Upheld

In Lewis, 128 TC 48 (2007), the Tax Court held, in a case of first impression, that Regs. Sec. 301.6330-1(e)(3), Q&A-E2, is valid. This regulation interprets Sec. 6330(c)(2)(B), which specifies when taxpayers can raise their underlying tax liability in a Sec. 6330 collection due process hearing on unpaid taxes. Background

Installment Agreements: An Alternative to Offers in Compromise

Editor: John L. Miller, CPA The IRS expects income taxes to be paid in a timely manner, but a taxpayer may be unable to make full payment of a tax liability when it is due. While offers in compromise are extremely complex and are often rejected by the Service, Sec.

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.

Tax Clinic

Planning for domestication transactions

Planning for new charitable contribution limits

Effect of the new pro rata share rules

Determining when a debt instrument has zero basis

Structuring partnership mergers