Rev. Proc. 2013-11 provides that certain losses are not taken into account in determining whether a transaction is a reportable transaction.
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IRS Practice & Procedure
Guidance Issued on Additional Medicare Tax
The IRS issued proposed regulations concerning the 0.9% Medicare surtax, which takes effect next year.
Who Can or Must File a Form 1099-C?
With taxpayers and businesses defaulting on credit and loans, tax advisers may consider whether their clients should issue a Form 1099-C for a bad debt.
U.S. Attorneys Are Authorized to Fight Stolen Identity Refund Fraud
In an effort to better combat crimes involving stolen identities and tax refund fraud, the Justice Department has changed the procedures it uses to handle such cases.
Inflation Adjustments for 2013
The IRS released its annual revenue procedure making inflation adjustments to the gift tax annual exclusion and other items for tax years beginning in 2013.
Tax Court Cannot Reopen Whistleblower Award Claim
In a case of first impression, the Tax Court held that it could not reopen a whistleblower claim where the IRS decided not to pursue the case and never instituted an action or collected any proceeds.
New ITIN Procedures Issued for 2013 Filing Season
The IRS promised issued new ITIN procedures for the 2013 filing season.
Rev. Proc. Updates Guidance on Adequate Disclosure of Return Positions
The IRS released its annual update identifying when a taxpayer’s disclosure of an item or position in an income tax return is adequate for purposes of reducing the understatement of tax penalty and the tax return preparer penalty for understatement due to unreasonable positions.
Effective Date of Tangible Property Regs. Delayed
The IRS announced it is delaying the effective date of the temporary regulations it issued in Dec. 2011 governing whether tangible property expenses could be deducted or had to be capitalized.
Failure to Enact AMT Patch Could Push Start of Tax Season to March for Millions, IRS Warns
The IRS warns that the start of tax season could be delayed for millions of taxpayers if the AMT patch is not enacted by the end of the year.
Modernized e-File Is Improving, but IRS Can’t Retire Legacy System Yet
TIGTA reported on the IRS’s progress in retiring its Legacy e-File system and moving to the Modernized e-File (MeF) system.
How Can the Nonpayment Testing Period for COD Income Be Improved?
The IRS asked for comments on whether it should amend existing the rules that require applicable financial entities to issue Forms 1099-C reporting COD income when a 36-month nonpayment testing period has expired.
One-Time Abatement of $5,000 Frivolous Filing Penalty Announced
Taxpayers who have filed all required tax returns and paid all outstanding tax liabilities, including penalties (except for the Sec. 6702 penalty) and related interest, may qualify for a one-time reduction to $500 of any unpaid penalties that the IRS has assessed.
IRS Extends Deadlines, Provides Relief for Hurricane Sandy Victims
The IRS announced various tax relief measures for individuals and businesses affected by Hurricane Sandy in Connecticut, New Jersey, and New York.
Consequences of Not Filing Go Beyond the Nonfiling Penalty
The Tax Court denied a deduction for a claimed theft loss because the taxpayer had not filed a tax return for the year of loss and thus did not make a proper election to itemize deductions.
Treatment of Identity Theft Returns Clarified
The IRS Office of Chief Counsel explained what the IRS can do when a return is filed by an identity thief and the IRS has issued a statutory notice of deficiency based on that fraudulent return.
IRS Modifies Position on Frozen Refundable Credits and the Substantial Understatement Penalty
The IRS announced that it will no longer impose a substantial understatement penalty when a taxpayer claims a refundable tax credit he or she is not entitled to, but the IRS does not pay the refund or approve the credit.
Taxpayer Advocate Service Will No Longer Accept Certain Cases
The Taxpayer Advocate Service changed its criteria for accepting individual taxpayer cases for assistance, reducing the instances in which it will accept cases.
IRS Nonacquiesces to 47-Year-Old Case
The IRS announced it will not follow the decision in International Business Machines Corp. in which the Court of Claims held that the IRS could only apply an adverse ruling prospectively if applying it retroactively would treat the taxpayer who requested the ruling differently from a taxpayer who received a favorable ruling on the same subject.
IRS Delays Oct. 31 Deadlines for Taxpayers and Preparers Affected by Hurricane Sandy
The IRS announced it is granting taxpayers and tax preparers affected by Hurricane Sandy until Nov. 7 to file returns and accompanying payments normally due on Oct. 31.
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.
