The TCJA’s reduction of corporate tax rates and the increase for QBI deductions is likely to pique interest in the claim-of-right provision.
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TOPICS
IRS Practice & Procedure
Regulations take precedence over common law mailbox rule
The Ninth Circuit agrees that Treasury regulations provide the exclusive exceptions to the physical-delivery rule, so the common law mailbox rule does not apply.
AICPA requests further guidance on QBI deduction
The AICPA asked Treasury and the IRS to issue additional guidance on Sec. 199A beyond the recently finalized regulations and a proposed revenue procedure in the form of a notice on a safe harbor for rental real estate.
Ninth Circuit upholds IRS cost-sharing regulation
The Ninth Circuit Court of Appeals reversed a Tax Court decision that had held that a cost-sharing regulation that required allocation of stock-based compensation was invalid.
Changes coming to tax transcript availability
To fight identity theft, starting June 28 the IRS will no longer fax transcripts to taxpayers, tax professionals, and other third parties. And in July it will stop providing an option for mailing transcripts to third parties.
Power of attorney and extension forms do not change taxpayers’ last known address
Power of attorney and return filing extension forms
do not meet the requirements for notifying the IRS of a taxpayer’s change of address.
Final Sec. 6707A regulations on penalty for failing to disclose reportable transactions
The IRS issued final regulations under Sec. 6707A, which imposes a penalty on taxpayers who fail to disclose a reportable transaction on their tax returns.
Excise tax refunds for purchases of frequent flyer miles
Banks, hotel groups, large retailers, utilities, and car rental companies may be eligible for refunds of federal excise tax paid when purchasing frequent flyer miles from domestic airlines to use in reward and loyalty programs.
IRS proposes rules for reporting life insurance transactions
The IRS proposed regulations under Sec. 6050Y, which governs reporting obligations for reportable policy sales of life insurance contracts and payments of reportable death benefits.
Tax time travel: Securing relief from unforced errors, missed elections, and other mistakes
This item provides a quick overview of several tools available to taxpayers who have made mistakes.
Future mineral production advance payments may be sooner than you think
The TCJA revised Sec. 451(c), changing the timing of taxation for certain advance payments, including advance payments for future mineral production
and delivery.
IRS issues draft of revised Form W-4 for 2020
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.
IRS corrects error in Schedule D tax calculation worksheet
The IRS notified tax software companies that it had discovered an error in the Schedule D, Capital Gains and Losses, Tax Worksheet used to calculate the tax on certain capital gains that had new rates as a result of the law known as the Tax Cuts and Jobs Act.
IRS extends filing deadlines for CCH customers
The IRS announced that taxpayers affected by the recent Wolters Kluwer service outage who are facing May 15 filing deadlines can follow certain procedures to obtain reasonable cause waivers for failing to file on time.
Impact of Sec. 199A in computing substantial-understatement penalties
An erroneously claimed qualified business income deduction under Sec. 199A can expose a taxpayer
to a substantial underpayment penalty.
Key tax reform provisions affecting sports franchises
This discussion focuses on two notable business provisions in the TCJA affecting sports franchises: new like-kind exchange provisions under Sec. 1031 and the QBI deduction under Sec. 199A.
Payment of an award for lost working time is taxable compensation
An award of wages for working time lost due to an injury on the job is taxable compensation under the Railroad Retirement Tax Act.
IRS can again charge preparers for PTINs
The IRS has authority to charge a fee for obtaining or renewing preparer tax identification numbers.
New due-diligence standards for head-of-household filing status
The TCJA and the PATH Act expanded the penalties on tax return preparers who fail to follow due-diligence procedures when clients claim certain credits or head-of-household filing status.
Form 8995 will be used to calculate QBI deduction for 2019 tax returns
The IRS posted a draft of a form that affected taxpayers will submit with their 2019 tax returns showing how they computed their qualified business income (QBI) deduction under Sec. 199A.
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.
