The IRS updated its streamlined offshore compliance procedures and issued new frequently asked questions (FAQs) about the procedures.
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IRS Practice & Procedure
President Signs Tax Extenders Into Law
President Barack Obama on Friday signed into law the Tax Increase Prevention Act of 2014, which retroactively extends more than 50 expired tax provisions through 2014.
Congress Passes Tax Extender Legislation
The Senate passed a bill to retroactively extend more than 50 expired tax provisions through 2014, by a vote of 76–16 on Tuesday evening. The extender bill passed the House of Representatives on Dec. 3, and it now goes to President Barack Obama for his signature.
Standard Mileage Rates Will Change Slightly in 2015
Optional standard mileage rates for use of a vehicle will change a little for 2015, the IRS announced, with the business use rate going up and the medical and moving rate going down.
AICPA Letter to IRS Highlights Shortcomings in New Electronic Signature Procedures
AICPA sent a letter to the IRS Commissioner raising concerns about the IRS’s recently issued guidance on electronic signatures.
New Rules on Written Tax Advice and Other Revisions to Circular 230 and Their Effect on CPAs
This article discusses the technical provisions of Circular 230, Regulations Governing Practice Before the Internal Revenue Service, and how recent revisions could affect existing tax practice procedures and the management of tax practices.
Filing Season Complications Loom, IRS Commissioner Tells AICPA
The 2015 tax filing season “will be one of the most complicated filing seasons we’ve ever had,” IRS Commissioner John Koskinen said in a keynote address Tuesday to hundreds of attendees at the AICPA National Tax Conference in Washington.
D.C. District Court Invalidates Regulation That Bans Contingent Fees for Preparing Refund Claims
A federal district court found Section 10.27(b) of Circular 230 invalid as it pertains to refund claims and permanently enjoined the IRS from enforcing the regulation with respect to fees for preparing refund claims.
IRS Appeals Office Announces New Procedures
Under the new Appeals Judicial Approach and Culture project, appeals officers are “no longer going to be examiners or investigators.”
Only Gains From Sale of Property Included in Statute-of-Limitation Determination
The Tax Court held that in determining whether the six-year statute of limitation on assessment due to a 25% omission from gross income applied, only the gains, rather than the full amount realized, on the sale of the taxpayers’ investment assets are taken into account.
CPAs Claim IRS Not Authorized to Charge PTIN Fees, Seek Return of Past Payments
CPAs filed suit in federal court for the District of Columbia, asking the court to stop the IRS from charging fees for issuing PTINs, to obtain refunds of fees paid in the past, and to enjoin the IRS from asking for more information than needed to issue PTINs.
2015 Inflation-Adjusted Items and Tax Tables Issued
The IRS issued the annual inflation adjustments for 2015 for more than 40 tax provisions as well as the 2015 tax rate tables for individuals and estates and trusts.
Social Security Administration Announces 2015 Wage Base
The Social Security Administration announced that the wage base above which OASDI taxes are not due will increase from $117,000 to $118,500 in 2015.
Proposed Regs. Would Eliminate 36-Month Testing Period from COD Reporting Requirements
Because the IRS believes that requiring the filing of Form 1099-C at the expiration of a 36-month nonpayment of debt testing period “creates confusion for taxpayers” and does not increase tax compliance, the Service proposes to eliminate the rule.
Notice Defines Terms for Economic Substance Doctrine
The IRS provided guidance defining "transaction" for purposes of applying the codified economic substance doctrine and "similar rule of law" for purposes of the accuracy-related penalty.
LB&I Directives on Information Document Requests and Rev. Proc. 94-69
The IRS recently issued new directives to its Large Business and International division that effectively change the process by which LB&I personnel handle information document requests.
AICPA Sues IRS Over Annual Filing Season Program
The AICPA filed suit in the U.S. District Court for the District of Columbia on July 15, asking the court to halt the IRS’s recently introduced Annual Filing Season Program. The AICPA’s three-count complaint asks the court to declare the rule implementing the program unlawful and stop its operation.
Court Says IRS Cannot Prevent Contingent Fee Arrangements for Refund Claims
The U.S. District Court for the District of Columbia granted a motion of summary judgment and issued an injunction to prevent the IRS from regulating contingent fee arrangements for the preparation and filing of ordinary refund claims under Circular 230.
Sec. 6707 Material Adviser Penalty Applies on a Transaction-by-Transaction Basis
The IRS issued final regulations under Sec. 6707, which imposes a large penalty on any material adviser who fails to file a return required under Sec. 6111(a) disclosing a reportable transaction or who files a false or incomplete return.
IRS Signals PPACA Compliance Issues for 2015
This month, the IRS made several updates to the Internal Revenue Manual that provide insight on the notices and enforcement methods the Service will use next tax season to ensure taxpayers comply with the health care law.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
