IRS Practice & Procedure

TOPICS

January 7, 2019

IRS sets start date for tax season, will issue refunds during government shutdown

The IRS announced that tax season will start in late January and that it will issue refunds to taxpayers despite the partial shutdown of the federal government.

January 1, 2019

Navigating the private debt collection program

The IRS’s statutorily mandated private debt collection program creates numerous hazards for unsuspecting taxpayers, allows fewer payment and negotiation options than direct contact with the IRS, and has not been cost-effective.

January 1, 2019

IRS to improve management of its existing tip agreements

A TIGTA audit report examined tip-related tax noncompliance and made nine recommendations to the IRS.

January 1, 2019

IRS to issue proposed regs. on the deductibility of expenses for certain business meals

Notice 2018-76 generally allows a taxpayer a 50% business deduction for meals associated with an entertainment activity to the extent that the meals are purchased separately from the entertainment, or the cost is stated separately from the entertainment cost on the receipt.

January 1, 2019

Tax credits in bankruptcy

Tax refunds that count as “public assistance benefits” may be exempt in bankruptcy.

January 1, 2019

Resolving federal tax liabilities

This article explains debt resolution methods, how tax practitioners can assist taxpayers in the process of resolving a liability, and how taxpayers can administratively appeal adverse IRS collection
determinations.

January 1, 2019

Recognizing when the IRS can reallocate income

The IRS can take advantage of several rules to ensure related-party transactions do not result in tax evasion or an improper reflection on income.

January 1, 2019

IRS to table changes planned for Form W-4 until 2020

As a result of feedback from payroll and tax professionals, the IRS will postpone the extensive changes it had planned to the 2019 Form W-4.

January 1, 2019

IRS announces new LB&I campaigns

The IRS LB&I identified 10 new campaigns that expand the focus areas under its issue-based examination program.

January 1, 2019

Transferee liability under Sec. 6901

A transferee could be liable for a transferor’s tax debts if property is purchased for less than fair value.

January 1, 2019

A substantial-authority scorecard and example for excluding Sec. 1202 gain for a carried partnership interest

Keeping a “scorecard” of the weight of authorities on a particular position can be helpful to determine the objective merits of a tax position.

January 1, 2019

Actor’s failure to document financial condition dooms offer in compromise

It was not an abuse of discretion for an IRS settlement officer to reject an offer in compromise where the taxpayer failed to document his assets or financial condition.

December 19, 2018

Government shutdown would halt many IRS operations

A partial government shutdown at midnight on Friday would affect the IRS, which has not been fully funded for fiscal year 2019.

December 1, 2018

Negotiation with collections officer is not administrative proceeding

The IRS abused its discretion in failing to consider the taxpayers’ proposed offer in compromise, installment agreement request, and economic hardship claim.

December 1, 2018

Amended returns satisfy statement-of-inconsistency requirement

A taxpayer’s amended returns sufficiently apprised the IRS of inconsistencies between the amended returns and the returns filed by the bankruptcy trustee of his wholly owned S corporation.

December 1, 2018

Avoiding an accuracy-related penalty through the reasonable-cause exception

By knowing the factors courts consider in determining whether a taxpayer meets the requirements for the reasonable-cause exception, and how the courts have applied the factors, tax advisers can help their clients properly mount a defense to an accuracy-related penalty.

November 27, 2018

IRS issues guidance on withholding for 2019

The IRS issued a notice providing interim guidance for the 2019 calendar year on income tax
withholding from wages and from retirement and annuity distributions.

November 15, 2018

Inflation adjustments and tax tables issued for 2019

The IRS issued the 2019 annual inflation adjustments for many tax provisions as well as the 2019 tax rate tables for individuals and estates and trusts.

November 13, 2018

New IRS commissioner brings practitioner’s perspective to role

Veteran tax attorney Charles Rettig gives his first public address as new IRS commissioner, speaking to CPAs Tuesday at the AICPA National Tax Conference in Washington.

November 6, 2018

Tax preparer due diligence rules are finalized

The IRS issued final regulations on the penalty that applies to tax return preparers who fail to exercise due diligence in preparing returns for taxpayers who are claiming head-of-household filing status, the earned income tax credit, the child tax credit, the additional child tax credit, or the American opportunity tax credit.