In a letter to the IRS and Treasury, the AICPA recommended, in light of the ongoing COVID-19 pandemic, that the IRS implement fair, reasonable and practical penalty relief measures, including targeted relief from both the underpayment-of-estimated-tax penalty and the late-payment penalty for the 2020 tax year.
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TOPICS
IRS Practice & Procedure
6 key areas of paid tax preparer regulation highlighted in AICPA letter to Congress
The Biden administration says the IRS should be given the authority to regulate paid tax return preparers who are currently unregulated, and the AICPA offers its recommendations in six key areas.
Your federal tax privilege checklist
Tax practitioners can rely on several doctrines
to preserve the confidentiality of client communications, but they must follow appropriate
procedures and provide clear documentation to protect the privilege in IRS exams or legal proceedings.
IRS waived specificity requirement for refund claim
The specificity requirement for a refund claim
was waived by a substantive investigation of a
claim.
Circular 230 should be amended to better reflect current tax practice
In response to a request for comments about planned revisions to Circular 230, the AICPA sent a letter making recommendations to the director of the IRS’s Office of Professional Responsibility.
IRS extends e-signature authorization for 6 months
In response to the coronavirus pandemic, the IRS issued guidance extending the temporary authorization to issue a number of IRS forms using electronic signatures from June 30, 2021, through Dec. 31, 2021.
AICPA recommendations on Q1 estimates and 2020 Form 709 extensions
The AICPA has released some recommendations for practitioners concerning various issues that have arisen due to the postponement of the April 15 tax deadline for individuals.
Bill to postpone estimated tax due date to be introduced in Congress
Rep. Lloyd Smucker, R.-Pa., announced he will introduce a bill that pushes back the due date for first-quarter 2021 estimated tax payments from April 15, 2021, to May 17, 2021. The AICPA expressed its support for the bill.
Members of Congress request estimated tax deadline postponement
A bipartisan group of 60 members of Congress wrote the IRS, urging that the deadline for first quarter 2021 federal estimated tax payments be postponed until May 17.
IRS to automatically issue refunds on tax-free unemployment benefits
To help taxpayers who might otherwise have been required to file amended income tax returns, the IRS announced that, beginning in May and continuing into the summer, it will automatically issue to eligible taxpayers refunds of income tax paid on 2020 unemployment benefits.
Unemployment benefit identity theft scam targets unemployed taxpayers
The IRS warned taxpayers that identity thieves are fraudulently claiming state unemployment benefits using stolen taxpayer identities. Here is what taxpayers should do if they receive a Form 1099-G reporting state unemployment benefits they did not receive.
Payment of deferred payroll taxes extended
The IRS issued updated procedures for the deferred employee portion of employment tax payments, which were further extended from April 30, 2021, to Dec. 31, 2021, by year-end legislation.
Excise tax on aircraft management services: Final regulations
This discussion addresses the key provisions in the regulations implementing the new aircraft management company exemption.
Practical highlights of recent tax research
This article looks at recent academic research of interest to tax practitioners.
Final rules determine when fines and penalties are deductible
The IRS issued final regulations on when fines and penalties paid to a government are not deductible by a taxpayer, including defining when a payment counts as restitution, which may be deductible.
Issuance of tax refund after expiration of Sec. 6532 time limit
Taxpayers need to be mindful of the two-year statute after filing an appeal request for reconsideration of the denial of a refund claim.
Supervisory approval not needed for Sec. 72(t) additional tax
The Sec. 72(t) additional tax on early distributions
is not a penalty that requires written supervisory approval.
Validity of notice is based on how and where it was sent, not who received it
The notice of a right to a CDP hearing is valid if it is properly sent to the taxpayer’s last known address,
regardless of who receives it at that address.
SEP plans: A cautionary tale about IRS audits
An employer’s failure to comply with SEP rules results in very costly penalties.
GAO evaluates IRS reorganization plan
A report assesses the IRS’s progress in complying with reform mandates in the Taxpayer First Act.
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.
