The AICPA raised concerns about the IRS’s recently issued guidance on electronic signatures, especially the standards that apply when a taxpayer does not appear in person before the tax return preparer to present a valid form of identification.
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IRS Practice & Procedure
IRS Explains Power-of-Attorney Requirements for Corporate Taxpayers
The IRS issued a bulletin clarifying when corporate officers or employees must have a valid power of attorney in order to represent the company before the IRS.
CPA Practitioners Sue to Stop PTIN Fees
Two CPAs have filed suit in the federal district court, 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.
Taxpayers Not Entitled to Question IRS Officials About Summonses
The Supreme Court held that a taxpayer is entitled to question IRS officials about the reasons the IRS issued a summons only if the taxpayer points to specific facts and circumstances that plausibly raise an inference of bad faith on the part of the IRS.
IRS Will Limit Number of Refunds Deposited to Same Account
In its latest attempt to fight tax refund fraud, the IRS said that, beginning in January 2015, it will impose a limit of three electronic direct deposits of tax refunds into a single financial account or prepaid debit card.
Six-Year Statute of Limitation Applies to Assessment
The Tax Court held that the six-year statute of limitation of Sec. 6501(e)(1)(A) applied to an assessment of tax based on a distribution from an ESOP because the taxpayer had not adequately disclosed the distribution on his tax return.
Unused ITINs to Expire Under New IRS Policy
Under a new IRS policy, individual taxpayer identification numbers that are not being used will expire after five years.
Capital Gain, Not Amount Realized, Determines Application of Six-Year Collection Statute
The Tax Court held that gross income for purposes of Sec. 6501(e) statute of limitation calculations includes only the gain from the sale of investments and not the amount realized from their sale.
New IRS Appeals Process Starts Sept. 2
The IRS Office of Appeals is changing the way it handles appeals to examination decisions.
Whistleblower Final Rules Expand Definition of Collected Proceeds
Comprehensive final regulations provide rules for whistleblower awards under Secs. 7623(a) and (b), as well as rules governing the disclosure of return information under Sec. 6103(h) to pursue these claims.
IRS Offers Voluntary Certification of Return Preparers
Following the defeat in federal court of its mandatory tax return preparer regulation program, the IRS in late June introduced a voluntary program of tax return preparer certification.
Form 5472 Filing Requirements to Become More Stringent
The IRS issued final and proposed regulations amending the rules for filing Form 5472.
Suspended or Disbarred Practitioners to Be Allowed to Prepare Tax Returns
The IRS has decided that, as a result of the recent decision preventing it from regulating unenrolled tax return preparers, disbarment or suspension from practice before the IRS cannot include a ban on tax return preparation or blocking an individual’s PTIN.
Practitioners’ Responsibilities in Complying With Records Requests
When responding to records requests, the tax practitioner must be cognizant of, and adhere to, the collective body of applicable professional standards and law.
Regulations Provide Guidance on Sec. 6707 Material Adviser Penalty
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.
New IRS Rules Simplify Compliance for Money Market Fund Shares
The IRS issued guidance that allows a simplified method for calculating gain or loss on shares in MMFs subject to the new rules and exempts redemptions of shares in these MMFs from the wash sale rules
Court Halts IRS Regulation of Contingent Fees for Refund Claims
A federal court granted 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.
AICPA Sues IRS to Stop Return Preparer Program
The AICPA filed suit in the U.S. District Court for the District of Columbia, asking the court to halt the IRS’s recently introduced Annual Filing Season Program.
Fighting Identity Theft, IRS Issues Final Rules on Truncated Identification Numbers
Final regulations allow the use of truncated taxpayer identification numbers on payee statements and certain other documents where not prohibited by the Code, applicable regulations, or other guidance published in the Internal Revenue Bulletin, forms, or instructions.
E-filing of Amended Returns, Elimination of Form 1040X Among TIGTA Recommendations
Taxpayers should be allowed to use Form 1040 to amend their returns and should be able to e-file amended returns, according to recommendations made by the Treasury Inspector General for Tax Administration.
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.
