A recently enacted law requires penalties for failing to file certain information returns to be adjusted for inflation. The latest adjustments are announced in this guidance.
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TOPICS
IRS Practice & Procedure
Criminal Tax Prosecutions Run the Gamut
In its annual business report for 2015, the IRS’s Criminal Investigation division discussed notable criminal tax prosecutions.
Bill with Passport and Third-Party Tax Collection Provisions Passes Congress
The highway funding bill passed by Congress includes provisions that will allow the government to revoke the passports of seriously delinquent tax debtors and will require the IRS to use third-party debt collectors.
DOL Issues Guidance Concerning Misclassification of Employees and Independent Contractors
The DOL’s Wage and Hour Division issued an
Administrator’s Interpretation addressing worker misclassification, which may deny employees significant workplace protections and lower tax revenues.
Assisting Clients With Tax-Related Identity Theft
CPAs and tax preparers can play a vital role in assisting clients who have become identity theft victims.
Fifth Circuit: “Taxpayer” Means a Person Who Pays Tax
The Fifth Circuit concluded that the district court erred in determining the definition of “taxpayer” by failing to consider the Code’s generally applicable definition of the term and further erred in interpreting the tolling provision by failing to follow the plain language of the provision and the associated regulations.
IRS Warns Practitioners of an e-Services Phishing Scam
The IRS issued a QuickAlert to tax practitioners, warning of a phishing scam that is attempting to capture practitioners’ e-Services usernames and passwords.
Tax ID Theft Victims May Obtain Copies of Fraudulent Returns
In a change of policy, the IRS announced procedures for victims of tax ID theft or their authorized representative to request copies of bogus returns filed by identity thieves.
IRS Provides Guidance on FBAR Penalties
The guidance provides procedures to ensure consistency and efficiency in the IRS’s administration of the FBAR compliance program.
Demanding Tax Season Likely Ahead, IRS Commissioner Tells AICPA
IRS Commissioner John Koskinen told the AICPA that continuing cuts to the agency’s budget mean less enforcement revenue and continued challenges in properly serving taxpayers’ and practitioners’ needs during the crush of tax season.
Lower Tax Rates, Territorial Regime Are Still Priorities, Former Ways & Means Chair Tells AICPA
Former Rep. Dave Camp highlighted for the AICPA the key issues that should remain a major focus of broader tax reform efforts.
Tax Court: Thou Shalt Not Promote False Tax Shelters
The Tax Court upheld the IRS’s imposition of penalties against a couple for marketing and promoting tax shelters based on the use of a corporation sole.
IRS Proposes Removing the Benefits-and-Burdens Test From Sec. 199
Proposed rules would provide that, if a qualifying activity is performed under a contract, the party that performs the activity is the taxpayer for Sec. 199 purposes.
IRS Admits Get Transcript Data Breach Three Times Larger Than First Announced
An additional 220,000 taxpayers had their tax return data stolen from the site.
Government Says Obstruction; Taxpayer Says Evasion
The Tenth Circuit rejected a taxpayer’s argument that his conviction for tax obstruction should be overturned because he actually was guilty of tax evasion.
PTIN User Fee Will Be Lowered
The IRS issued regulations lowering the fee for PTINs, effective for the coming filing season, from $50 to $33, effective Nov. 1, 2015.
IRS Issues 2016 Inflation Adjustments and Tax Tables
The IRS issued the annual inflation adjustments for 2016 for more than 50 tax provisions as well as the 2016 tax rate tables for individuals and estates and trusts.
IRS Announces Progress in Collaborative Fight Against Tax Return Identity Theft
Six months after announcing it was partnering with state tax authorities, tax preparation companies, and other interested parties, the IRS said it is making progress in the collaborative effort to fight identity theft.
2016 Social Security Wage Base Is Released
The good news for workers is that there will also be no increase in the amount of wages subject to Social Security taxes (old age, survivor, and disability insurance).
Updated Rules Would Govern Tax Court and Appeals Office Procedures
The new procedures are designed to facilitate consideration by the IRS Appeals office, while maintaining the independence of the appeals process as required under the law.
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.
