IRS Practice & Procedure

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March 25, 2014

New Guidance Clarifies Tax Treatment of Bitcoin and Other Virtual Currencies

The IRS issued its first guidance on the tax rules that apply to virtual currencies, in the form of 16 questions and answers.

March 21, 2014

IRS Clarifies: Electronic Signatures Permitted for Form 8879

The IRS updated the online version of Publication 1345, Handbook for Authorized IRS e-File Providers of Individual Income Tax Returns, to clarify that electronic signatures are permitted for Form 8879 as well as Form 8878.

March 13, 2014

IRS Expands Use of Electronic Signatures

The IRS provided new methods for taxpayers to electronically sign Form 8878.

March 1, 2014

Several Taxpayer Services Become Online Only

The IRS has stopped providing a number of taxpayer assistance services in person or over the phone and has shifted those services online.

March 1, 2014

New Mandatory IDR Enforcement Procedures for LB&I Examinations

The IRS’s Large Business and International Division has recently focused on implementing significant changes to its information-gathering process by changing procedures for information document requests.

March 1, 2014

Form 1099-B and the New Adjusted Tax Basis and Sales Proceeds Reporting Rules for Brokers

This item focuses on the general taxation of debt instruments and provides an overview of the new reporting requirements and the implications they raise.

March 1, 2014

John Koskinen Confirmed as IRS Commissioner

Senate confirmed John Koskinen to be the next IRS commissioner.

March 1, 2014

Taxpayer Did Not Have Fraudulent Intent

The Tax Court held that a taxpayer who used an “agent-principal” scheme to avoid paying taxes on income from his business was not liable for a civil fraud penalty because the IRS had failed to prove that the taxpayer had fraudulent intent.

February 27, 2014

IRS Issues Final Instructions for Net Investment Income Tax Form

The IRS finally released its eagerly awaited final instructions for Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts.

February 25, 2014

Report Reveals Breadth of Criminal Tax Activities

The IRS Criminal Investigation division’s annual report reviewing its accomplishments in 2013 reveals the wide range of criminal tax activities it investigated in the past year.

February 19, 2014

“Dirty Dozen” Tax Scam List Now Includes Telephone Scams

Identity theft and telephone scams top this year’s list of the “Dirty Dozen” fraudulent tax schemes released by the IRS.

February 11, 2014

D.C. Circuit Affirms Decision Striking Down Tax Return Preparer Regs.

The IRS’s attempt to regulate unenrolled tax return preparers was dealt another blow when the D.C. Circuit Court of Appeals held that the agency exceeded its statutory authority when it issued regulations imposing various requirements on tax return preparers.

February 10, 2014

New IDR Procedures Postponed Until March 3

The IRS announced in an email to practitioners that it is pushing back the effective date for its new information document request (IDR) procedures.

February 1, 2014

Final Regs. Permit Agents to Withhold FUTA for Home Care Service Recipients

The IRS issued final regulations permitting an agent authorized by the IRS under Sec. 3504 to perform certain acts normally required of employers to withhold FUTA taxes owed by home care service recipients.

February 1, 2014

An Overview of AICPA and IRS Rules of Practice

This column refreshes practitioners on the AICPA and IRS rules of practice, provides a list of resources for questions and answers, and details the relationship and similarities between the AICPA and IRS ethics standards related to tax practice.

February 1, 2014

Taxpayer Did Not Have Fraudulent Intent

February 1, 2014

Valuation-Misstatement Penalty Applies to Tax Shelter Transactions

The Supreme Court held in that the Sec. 6662(b)(3) penalty for tax underpayments attributable to valuation misstatements applies to an underpayment resulting from a basis-inflating transaction that is disregarded for a lack of economic substance.

February 1, 2014

New IDR Policy Means Stricter Deadlines, More Discussions

A directive issued by IRS LB&I Division contains guidelines for issuing an information document request (IDR) and, separately, rules for enforcing the IDR.

February 1, 2014

District Court Considers Taxpayer’s Privilege and Work Product Doctrine Claims in IRS Summons Action

A recent case provides insight into how other courts may define materials prepared “in anticipation of litigation” and apply the work product doctrine, attorney-client privilege, and tax practitioner privilege to disputes between taxpayers and the IRS.

January 27, 2014

Final Version of Net Investment Income Tax Form Released

Just in time for the start of tax season, the IRS has released the final version of Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, which will be used by individuals and trusts and estates to compute the new 3.8% tax.