Financially troubled since 2001, the Highway Trust Fund might get more than its typical Band-Aid fix with a proposed new funding source that could also kick off comprehensive tax reform.
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IRS Practice & Procedure
Temporary Regulations End Automatic Extension for Forms W-2
In a move designed to fight taxpayer identity theft and tax fraud, the IRS will eliminate automatic extensions of time to file forms in the W-2 series, starting in 2017.
Taxpayer Data at Risk From Expansion of IRS Online Taxpayer Services, TIGTA Says
By expanding its online services, the IRS is putting taxpayers’ data at greater risk, the Treasury Inspector General for Tax Administration told Congress.
Construction Contractor Hammered on Trust Fund Penalty
The Tax Court held that a responsible person taxpayer was not entitled to currently not collectible status for her liability attributable to a trust fund recovery penalty and that adequate protection payments made to the IRS by her wholly owned corporation could not be applied to her liability.
The Threat of Parallel Investigations: When Civil Isn’t Civil
This article examines recent developments in parallel civil and criminal investigations as they have been reinvented over the past decade.
Rep. Ryan Addresses Spring AICPA Council Meeting
Rep. Paul Ryan, chairman of the House Ways and Means Committee, outlined his priorities since taking over committee leadership.
Return Due Dates Changed in Highway Funding Bill
The short-term highway funding extension passed by the Senate contains several important tax provisions.
Tax Court Invalidates Stock-Based Compensation Rule in Cost-Sharing Agreements
The Tax Court held that Regs. Sec. 1.482-7(d)(2), requiring entities to share stock-based compensation costs under qualified cost-sharing agreements, failed to meet the reasoned decision-making standard and was invalid.
Regulations Provide Guidance on Proper Place to File Refund Claims
The new rules generally require taxpayers filing claims for refund or credit to file their claim with the IRS service center at which the taxpayers currently would be required to file a tax return for the type of tax to which the claims relate.
National Taxpayer Advocate: IRS Falling Down on the Job of Helping Identity Theft Victims
During some of the busiest weeks of tax season, less than one caller in 10 to the IRS’s Taxpayer Protection Program phone line was able to reach IRS staff for assistance, according to Nina Olson, the national taxpayer advocate.
Small Businesses Bear a Significant Portion of Federal Tax Compliance Cost
Using a prudent tax adviser is economical for some, but it is a luxury for others, particularly for U.S. small businesses. This item focuses on small businesses that are independently owned, with gross receipts of less than $10 million.
Filing, Withdrawing, and Managing IRS Authorizations
Clients need their CPA to have the appropriate authorization to communicate with the IRS on their behalf. Whether they are selected for an audit, assessed a large penalty, or simply need a transcript to determine what payments were made this tax year, clients rely on CPAs to address their tax issues. Most practitioners regularly use a power of attorney to represent their clients. However, other types of IRS authorizations have practical uses. And, at times, it may make sense to obtain more than one type of authorization.
Relief From Penalties for Late-Filed International Information Returns
Penalties apply for failure to report the information required under Secs. 6038 and 6038A by failing to timely file Form 5471, 5472, or 8865. There are two procedural paths for a taxpayer that files a late form.
Special Deadline: Filing Amended Returns Reporting Tax Due Within 60 Days of Assessment Limitation
When a taxpayer files an amended return reporting additional tax within 60 days before expiration of the assessment limitation period, Sec. 6501(c)(7) provides that the period within which the IRS can assess the additional tax does not expire before the 60th day after the day on which it receives the amended return. This extension of the assessment limitation period applies only to the additional tax reported on the amended return.
Uncollectible Status: An Alternative Resolution
The IRS will designate a taxpayer’s account as “currently not collectible” under certain circumstances, removing the account from its active inventory. Having an account placed in uncollectible status allows the taxpayer to remain current in tax compliance without worrying about enforcement action and allows a taxpayer to recover from a financial setback.
IRS Has Fixed Many of Its Problems With Social Welfare Organization Applications
Two years after finding the IRS used inappropriate criteria when reviewing applications for tax–exempt status under Sec. 501(c)(4) and delayed processing some applications—a report that led to congressional investigations and the resignation of IRS Exempt Organizations Director Lois Lerner—TIGTA issued a follow–up report to check on the IRS’s progress in eliminating the controversial practices.
IRS to Limit Refunds and Credits of Foreign Withholding Payments
The IRS announced in Notice 2015–10 that it intends to amend its regulations to prevent taxpayers subject to withholding under chapter 3 or 4 of the Code from obtaining refunds or credits of withheld tax where a withholding agent failed to deposit the amounts required under Sec. 6302.
Designated Private Delivery Service Rules Are Updated
For the first time in over 10 years, the IRS updated the list of designated private delivery services (PDSs) that taxpayers can use to take advantage of Sec. 7502’s timely mailing equals timely filing/paying rule (Notice 2015–38). The notice also updates the timely filing rules that apply to designated PDSs.
TIGTA Finds IRS Failed to Answer Millions of Phone Calls This Tax Season
The number of taxpayer phone calls the IRS answered dropped significantly during this tax season, and call wait times were up, according to an interim report issued by the Treasury Inspector General for Tax Administration. TIGTA found that the IRS’s level of service (defined as the number of calls in the IRS’s toll–free assistance queue that are answered) dropped to 38.5%, compared with 74.7% last tax season.
Congress Makes Changes to Tax Code in Trade Preferences Act
The Trade Preferences Extension Act of 2015 contains tax provisions in addition to the trade measures that were the focus of the bill.
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.
