The memorandum lists 10 challenges in order of importance, ranging from data security to achieving operational efficiencies.
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TOPICS
IRS Practice & Procedure
IRS allows taxpayers to change their minds on bonus depreciation
The IRS will permit taxpayers to change their bonus depreciation treatment for property acquired after Sept. 27, 2017, and placed in service during a tax year that includes Sept. 28, 2017.
IRS practitioner services and AICPA’s ongoing advocacy for improvement
The AICPA pushes for investments in IRS-practitioner communications that could reduce compliance burdens for millions of taxpayers.
Taxpayer First Act provision prompts IRS to change its third-party contact procedures
The IRS issued updated procedures for third-party contacts to reflect changes enacted in the recent Taxpayer First Act, requiring the IRS to notify taxpayers at least 45 days before it contacts a third party to determine or collect a tax.
Reliance on preparer is not reasonable cause for late filing
The advent of e-filing has not changed the rule that reliance on a preparer to file a return is not a reasonable cause for a taxpayer’s failure to file a timely return.
Substitute-for-returns procedure
Taxpayers who fail to file tax returns may receive assessments from an IRS-prepared substitute for return.
Taxpayer First Act changes the dynamic between IRS and practitioners
The law signed in July is aimed at enhancing taxpayer rights and improving customer service.
Regulations clarify bonus depreciation treatment
The IRS issued final regulations and new proposed regulations on the 100% bonus depreciation deduction that was amended by the law known as the Tax Cuts and Jobs Act.
Corporations have short period to apply for IRS CAP program
The IRS announced that it is opening its Compliance Assurance Process (CAP) program to new applicants for the first time in years, but applications must be made between Sept. 16 and Oct. 31.
Truncated TINs are permitted under final regulations
As part of its effort to reduce identity theft, the IRS issued final rules permitting employers to provide truncated taxpayer identification numbers on Forms W-2, Wage and Tax Statement, they provide to employees.
Congress approves IRS reform legislation
The bill establishes an independent appeals office and requires the IRS to develop a customer service strategy. A controversial provision codifying the Free File program was dropped from the bill.
Underpayment penalty relief now automatic for eligible filers
Some taxpayers who paid 2018 underpayment penalties will receive refund checks because the penalties will be automatically waived for those who qualify, the IRS announced.
Alimony tax gap swells to $3.2 billion, TIGTA finds
Discrepancies between the amount of alimony deducted by payers and reported as income by its recipients increased by 38% in six years, the Treasury Inspector General for Tax Administration reported.
IRS changes its third-party contact procedures
The IRS issued updated procedures for third-party contacts to reflect changes enacted in the recent Taxpayer First Act, requiring the IRS to notify taxpayers at least 45 days before it contacts a third party to determine or collect a tax.
Taxpayer Bill of Rights violation does not invalidate notice of deficiency
The IRS’s failure to follow principles in the Taxpayer Bill of Rights did not deprive a taxpayer of her right to challenge deficiency determinations in the Tax Court.
2020 Form W-4 has been revised
The new draft form, which has been extensively redesigned, is intended to simplify the calculation of income tax withholding after the changes made by the law known as the Tax Cuts and Jobs Act.
Taxpayers may revoke or make late bonus depreciation elections
The IRS will permit taxpayers to change their bonus depreciation treatment for property acquired after Sept. 27, 2017, and placed in service during a tax year that includes Sept. 28, 2017.
IRS alerts virtual currency owners of nonfiling consequences
The IRS has begun sending what it calls “educational letters” to taxpayers it has identified as not reporting virtual currency transactions or reporting them incorrectly.
Final rules permit truncated TINs on W-2s
As part of its effort to reduce identity theft, the IRS issued final rules permitting employers to provide truncated taxpayer identification numbers on Forms W-2, Wage and Tax Statement, they provide to employees.
Congress approves IRS reform bill, drops Free File language
The bill establishes an independent appeals office and requires the IRS to develop a customer service strategy. A controversial provision codifying the Free File program was dropped from the bill.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
