The IRS filed a Notice of Appeal to the D.C. Circuit of the Jan. 18 district court decision that struck down the IRS’s registered tax return preparer program and enjoined it from enforcing the regulations.
Advertisement
TOPICS
IRS Practice & Procedure
AICPA Makes Tax Reform Recommendations to Ways and Means Committee Working Groups
The AICPA submitted recommendations for tax reform to five of the 11 working groups the House Ways and Means Committee has formed.
IRS Decides to Shut Down Completely on Furlough Dates
The IRS will close “all public-facing operations,” including toll-free operations and Taxpayer Assistance Centers, on five dates in response to the budget cuts from sequestration.
Witnesses Tell Senate Finance Committee Ways to Improve Tax System
Witnesses gave the Senate Finance Committee a variety of suggestions on how to fight tax identity theft and fraud, reform the tax system, and fund the IRS during a hearing on Tuesday.
Significant Decline in IRS Staff Leads to Fewer Audits
The IRS plans to expend 18% fewer staff hours auditing large businesses with assets of more than $10 million in fiscal year 2013.
Incorrect Expert Advice About Estate Return Filing Deadline Does Not Excuse Penalty
An executor who relied on his accountant’s mistaken advice that he had obtained a one-year extension of the filing due date for Form 706 was nonetheless liable for a large late-filing penalty.
U.S. Withholding Tax Requirements on Payments to Nonresidents and Foreign Entities
This item provides an overview of the types of income subject to U.S. withholding tax and related U.S. information reporting requirements.
Expanded Due-Diligence Requirements for 2012 Returns
This item discusses Form 8867, Paid Preparer’s Earned Income Credit Checklist, extensive new due-diligence requirements for wage earners, and Schedule C, Profit or Loss From Business
Is Tax Identity Theft Becoming an Epidemic?
As the primary resource for many client questions on both tax and IRS procedure, tax advisers should understand the issues surrounding identity theft.
Details of IRS Expanded Policy of Restraint Not Yet in IRM; Range of Applicability Unclear
Though the IRS in 2010 expanded its policy of restraint in requesting audit and tax accrual workpapers, it has not yet updated the Internal Revenue Manual to reflect those changes.
Bankruptcy and the Trust Fund Recovery Penalty
When a corporation fails to remit the withheld taxes to the government, the IRS looks through the corporation to the individual or individuals who are responsible for the failure.
IRS’s Identity Theft Liaison Pilot Program with Law Enforcement Expands to 50 States
The IRS announced the expansion of its Law Enforcement Assistance Program on identity theft to 50 states and D.C.
IRS Extends Suspension of Examinations of Tangible Property Capitalization Issues
The IRS posted an updated LB&I Directive for field examinations on the repair vs. capitalization issue that extends the suspension of examinations
Appeals Court Denies IRS Request for Stay in Return Preparer Regulation Case
The IRS lost another round in its court battle to regulate tax return preparers when an appeals court denied its motion to stay an injunction halting its return preparer regulation program, pending appeal of a lower court’s decision.
“Sovereign Citizens” Promoter Faces up to 164 Years in Prison
A proponent of the “sovereign citizens” movement has been convicted of conspiracy to defraud the United States through a series of seminars in which attendees were taught to pay their federal income taxes by filing fictitious bonds.
Identity Theft, Phishing Top IRS’s “Dirty Dozen” Tax Scams
The IRS issued its “Dirty Dozen” list of tax scams, highlighting fraudulent schemes commonly committed by and upon taxpayers.
Taxpayers Filing Delayed Forms Get Late-Payment Penalty Relief
The IRS announced that it will waive the penalty normally assessed for late payment of income tax, for taxpayers who have requested an extension of time to file their return and who are filing one of the 31 forms that were delayed until March.
Tax Reform Prospects Good, Say Veterans of 1986 Reform
Developments since the 1986 Tax Reform Act was signed favor a successful outcome for the current reform effort, said two experts who worked for congressional committees producing the earlier legislation.
Tax Court Stops Taxpayers from Avoiding 40% Penalty by Conceding on Alternative Grounds
The Tax Court refused to grant partial summary judgment to a partner who had conceded his tax shelter case on grounds other than valuation in an attempt to avoid the 40% gross valuation misstatement penalty.
Sec. 6708 Regs. Permit Material Advisers to Request Extension
The IRS issued proposed regulations governing the penalty for failure of material advisers to provide lists of advisees in reportable transactions, which applies if the advisers do not supply the lists to the IRS within 20 business days after a written request.
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.
