The Tax Court held that the amount of tax shown on the taxpayers’ return was reduced by refundable credits, but not below zero, for purposes of calculating the Sec. 6662(a) accuracy-related penalty.
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IRS Practice & Procedure
Tax Return Preparers Suspected of Filing Inaccurate EITC Claims to Be Targeted by IRS
The IRS announced in an email to tax practitioners that it will send letters in November and December to return preparers “suspected of filing inaccurate EITC claims.”
Permanent Injunction Closes Large Tax Preparation Firm
A federal district court in Ohio has issued a permanent injunction ordering ITS Financial LLC, the parent company of Instant Tax Service tax franchiser, to cease operations.
IRS Extends Fast-Track Settlement to Smaller Businesses Nationwide
Formerly available only to large and midsize businesses and in a geographically limited pilot program for smaller entities, the IRS’s Fast Track Settlement program is now available to smaller businesses nationwide, the IRS announced.
IRS Will Recognize All Legal Same-Sex Marriages
The Treasury Department and IRS announced that “same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes.”
“Credit Ratings” Removed From Regulations
The IRS issued final regulations that remove all references to and all requirements of reliance on “credit ratings” from Treasury regulations.
User Fees for Installment Agreements and Offers in Compromise to Go Up
The IRS issued proposed regulations to raise user fees for installment agreements and for offers in compromise.
IRS Oversight of CPAs Who Provide Valuation Services
With the enactment of Sec. 6695A, the IRS was given new responsibilities to ensure the quality of appraisals and appraisers who provided information in support of a taxpayer’s federal tax filings.
Taxpayer Representation in the Shadow of Preparer Discipline
Tax practitioners at times must balance client interests and their own professional interests. This issue takes on even greater import when the CPA is representing a client before the IRS.
PTIN Renewal System Reopens
Two weeks after the end of the government shutdown, the IRS reopened its registration system for renewing preparer tax identification numbers (PTINs) for the 2014 filing season.
IRS Releases Inflation Adjustments for 2014
The IRS issued the annual inflation adjustments for 2014 for more than 40 tax provisions and the tax tables for 2014.
Social Security Wage Base Rises to $117,000 for 2014
The Social Security Administration announced that the wage base above which taxes for old age, survivors, and disability insurance (OASDI) are not due will increase from $113,700 to $117,000 in 2014.
Ineffective Income and Withholding Verification Hinder IRS in Detecting Fraudulent Returns
A TIGTA report concluding that inadequate income and withholding verification results in the IRS’s missing many fraudulent returns.
Filing Season Will Be Delayed, IRS Says
The IRS announced a delay of one or two weeks in the start of the 2014 filing season as a result of the 16-day government shutdown to allow adequate time for the IRS to prepare and test systems.
IRS and Tax Court Reopen After Government Shutdown; PTIN Renewals Delayed
After the president signed the bill reopening the federal government, the IRS and Tax Court announced that they are back open for business. But the IRS also announced a delay in 2014 PTIN renewals.
Government Shutdown, Debt Ceiling Deal Includes One Tax Provision
Wednesday’s deal to fund the federal government through Jan. 15 and to extend the federal government’s borrowing authority through Feb. 7 in the end contained only one tax provision, making a minor change to 2010’s health care legislation.
Federal Courts to Stay Open Through Oct. 17
The federal judiciary announced on Thursday that federal courts will remain open through Thursday, Oct. 17, unless the government shutdown is resolved and court funding is restored before then.
IRS Not Issuing Liens or Levies, Enforcement Actions Limited, During Shutdown
The IRS updated its website to notify taxpayers that, during the current government shutdown, the IRS is not sending out liens or levies either generated automatically or sent by personnel.
IRS Tackles Inefficiency in Its Examinations of Large Taxpayers
The IRS sees an opportunity to create a more efficient form of oversight for large taxpayer examinations so it can redirect resources to other pressing compliance challenges.
IRS Tightens Penalty Relief
Recent IRS actions suggest a movement away from granting penalty relief. Recent budget cuts, furloughs, and negative press have exacerbated the trend by significantly decreasing IRS resources, resulting in slower responses to taxpayer inquiries.
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.
