IRS Practice & Procedure

TOPICS

December 1, 2013

Heightened Emphasis on Worker Classification

Worker classification has been a major concern for many years. While it is clear that government agencies recognize that worker misclassification is a significant problem, how to classify workers remains unclear.

December 1, 2013

IRS Abused Discretion by Not Considering Taxpayer’s Offer-in-Compromise

The Tax Court held that the IRS had abused its discretion by closing a taxpayer’s case one day after a deadline passed for him to furnish certain documents related to his proposed offer-in-compromise.

November 21, 2013

TIGTA Report Says IRS Should Do a Better Job Protecting Taxpayer Data

The IRS does not do a good job of correcting security weaknesses, thereby failing to protect taxpayer data, TIGTA concluded in a report released Thursday.

November 19, 2013

For Penalty Calculation, Amount of Tax Shown on Return Reduced by Credits, Tax Court Holds

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.

November 12, 2013

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.”

November 8, 2013

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.

November 6, 2013

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.

November 1, 2013

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.”

November 1, 2013

“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.

November 1, 2013

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.

November 1, 2013

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.

November 1, 2013

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.

October 31, 2013

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.

October 31, 2013

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.

October 30, 2013

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.

October 28, 2013

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.

October 22, 2013

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.

October 17, 2013

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.

October 16, 2013

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.

October 10, 2013

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.