IRS Practice & Procedure

TOPICS

January 1, 2013

Disaster Relief Extensions Apply Only to Original Post-Casualty Dates

When natural disasters strike, they often affect thousands or millions of taxpayers, and their effects can last for a long time. To provide some relief in these situations, the IRS often postpones various filing, deposit, and, sometimes, payment deadlines for affected taxpayers.

January 1, 2013

Updated Guidelines for Ex Parte Communications

The IRS updated the rules on ex parte communications between IRS Office of Appeals (Appeals) employees and employees of other IRS functions.

January 1, 2013

Significant Changes to Offer in Compromise Program

The IRS published new guidelines for its offer in compromise program as part of its expansion of the “Fresh Start” program.

January 1, 2013

The Number of No-Change Audits Is a Concern

Two TIGTA audits are report that although the SB/SE audits recommended substantial adjustments, roughly 33% of all the audits in fiscal years (FYs) 2009–2011 resulted in no change.

December 27, 2012

Mandatory Language for Consents to Disclose, Use Taxpayer Information Modified

The IRS has provided guidance to tax return preparers about the format and content of taxpayer consents to disclose and consents to use tax return information and modified the mandatory language required on each taxpayer consent.

December 26, 2012

Rules on Use, Disclosure of Taxpayer Information Finalized

The IRS issued final regulations under Sec. 7216 that govern the circumstances in which tax return preparers can disclose or use certain limited tax return information.

December 18, 2012

Voluntary Classification Settlement Program Expanded, Liberalized

The IRS announced significant changes to its Voluntary Classification Settlement Program (VCSP).

December 17, 2012

Proposed Regs. Provide Rules for Whistleblower Awards

The IRS issued proposed regulations for whistleblower awards, as well as rules governing the disclosure of return information under Sec. 6103(h) to pursue these claims.

December 14, 2012

Tangible Property Regs. Amended to Implement Delayed Effective Date

The IRS released technical amendments that delay the effective date of the temporary regulations it issued in December 2011 governing whether tangible property expenses could be deducted or had to be capitalized.

December 13, 2012

Rules Distinguishing Tips From Service Charges Delayed Until 2014

The IRS announced that businesses have additional time to make the changes needed to comply with the proper treatment of tips and service charges.

December 7, 2012

Reportable Transaction Rules Updated for Certain Losses

Rev. Proc. 2013-11 provides that certain losses are not taken into account in determining whether a transaction is a reportable transaction.

December 3, 2012

Guidance Issued on Additional Medicare Tax

The IRS issued proposed regulations concerning the 0.9% Medicare surtax, which takes effect next year.

December 1, 2012

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.

December 1, 2012

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.

December 1, 2012

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.

December 1, 2012

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.

November 29, 2012

New ITIN Procedures Issued for 2013 Filing Season

The IRS promised issued new ITIN procedures for the 2013 filing season.

November 26, 2012

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.

November 20, 2012

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.

November 19, 2012