When responding to records requests, the tax practitioner must be cognizant of, and adhere to, the collective body of applicable professional standards and law.
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TOPICS
IRS Practice & Procedure
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.
Limit on Direct Deposit of Refunds Will Go Into Effect in 2015
Beginning in January 2015, the IRS will impose a limit of three electronic direct deposits of tax refunds into a single financial account or prepaid debit card.
When Do Sec. 6402 Offsets Trigger the Refund Limitation Period?
It is critical to determine the date on which a liability satisfied by credit of an overpayment is considered to have been paid.
9100 Relief: It May Not Be Too Late After All
Treasury regulations offer a form of relief allowing a late election, commonly known as “section 9100 relief.” Two types of relief are offered by Regs. Secs. 301.9100-1 through -3-automatic relief and nonautomatic relief.
Notice CP 89: This Is Not a Bill
The IRS CP 89, Annual Installment Agreement Statement, is not a “bill.” If the taxpayer has entered into an installment agreement to make monthly payments for past due tax liabilities or has paid off the liability in the last 12 months, he or she will receive this notice.
Unused ITINs Will Expire After Five Years Under New IRS Policy
The IRS announced a new: ITINs that are not being used will expire after five years. The policy will go into effect in 2016.
IRS Cannot Enforce Summons
The Tenth Circuit found that the 23-day notice requirement was an administrative step that the IRS had failed to meet, and therefore the court could not enforce summonses against the taxpayer.
Tax Simplification: Key to Fighting Tax Return Identity Theft
Identity theft and tax simplification are high priorities for members of Congress, the IRS, and all taxpayers. Though most people think the issues are unrelated, one potential way to decrease identity theft and preparer fraud is tax simplification.
LLCs Waived Attorney-Client Privilege for Opinion Letters
The Tax Court held that in a son-of-boss tax shelter case, two LLCs waived attorney-client privilege for opinion letters from their attorneys by asserting defenses that turned on the LLCs’ beliefs or state of mind.
Complete Rules for the IRS’s Voluntary Return Preparer Certification Program Are Released
The IRS published guidance introducing its new, voluntary Annual Filing Season Program, which permits tax preparers who are not CPAs, attorneys, or enrolled agents to complete tax education requirements and receive a certificate
IRS Reveals Details of Voluntary Preparer Certification Program
The IRS announced that it will soon introduce a voluntary program for tax return preparers called the Annual Filing Season Program.
Final Rules Involve Disregarded Entities, Indoor Tanning Tax, and FICA and FUTA Exemptions
The IRS finalized rules on the disparate topics of disregarded entities that collect the excise tax on indoor tanning and how certain exceptions from FICA and FUTA taxes work when a disregarded entity is involved.
AICPA Reiterates Its Strong Concerns About IRS Voluntary Certification Program
The AICPA sent a letter to the IRS, expressing its strong concerns that a proposed IRS voluntary certification program for unenrolled tax return preparers “would cause significant legal problems that may ultimately frustrate the IRS’s goals, confuse the public, and lead to litigation.”
Supreme Court Issues Decision on IRS Summons Enforcement
A Supreme Court decision allows individuals to question IRS employees regarding their reasons for issuing a summons if the individual can point to specific facts that plausibly raise an inference of bad faith on the part of the IRS employee.
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.
