The IRS released new Form 8937, Report of Organizational Actions Affecting Basis of Securities, and its instructions. The deadline for filing the form for 2011 is next Tuesday, January 17.
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IRS Practice & Procedure
Taxpayer Advocate Cites Underfunding as Cause of IRS’ Most Serious Problems
The National Taxpayer Advocate in her annual report to Congress for 2011, cited the IRS’ lack of adequate funding, expanding workload and overreliance on automation as the most serious problems facing taxpayers.
PTIN System Continues to Accept 2011 Renewals
The IRS online system to apply for a PTIN is back up and running after a two-week hiatus for maintenance. The system is continuing to accept 2011 PTIN renewals even though the renewal deadline has passed.
IRS Announces Third Offshore Voluntary Disclosure Program
The IRS announced it is starting its third program designed to help people hiding offshore accounts get current with their taxes in the United States.
Final Regs. on Listed Transactions for GST Tax
The IRS issued final regulations that add transactions that reduce or eliminate the GST tax as listed transactions or transactions of interest and require the disclosure of those transactions under Sec. 6011.
IRS Will Delay Fingerprinting Requirement for Return Preparers
The IRS will delay and reconsider its fingerprinting requirement for tax return preparers, IRS Commissioner Douglas Shulman told the AICPA National Tax Conference.
Large Business and International Examination Process Changes
The IRS Large Business and International (LB&I) Division has focused on improving the quality, efficiency, and effectiveness of the overall compliance and examination process for LB&I taxpayers.
Worker Classification Issues on Washington Agenda
Worker classification issues have become a major tax administration focus in our nation’s capital over the past few months.
2010–2011 Revisions to Circular 230
This article focuses primarily on the Circular 230 tax preparer penalties and other sanctions as well as the regulations governing practice before the IRS that were revised by T.D. 9527.
IRS Updates Determination Letter Procedures for Preapproved Plans
In Rev. Proc. 2011-49, the IRS updated the procedures for sponsors and practitioners to request opinion and advisory letters regarding qualification under Secs. 401 and 403(a) for preapproved plans.
IRS, DOL, Several States to Share Data on Worker Classification
The DOL and the IRS agreed to share information and coordinate law enforcement “to end the business practice of misclassifying employees in order to avoid providing employment protections.”
IRS Launches New Round of Preparer Office Visits
For the third year, the IRS is running a preparer compliance program, and this year’s version represents an expansion and modification of last year’s “10,000 letters” campaign.
EITC Due-Diligence Requirements: IRS Ramps Up Enforcement and Education Efforts
This article explains the basic EITC rules, the due-diligence requirements under Sec. 6695(g), and the proposed changes to the regulations under Sec. 6695(g).
New Tax Provisions for 2012
With the ringing in of the new year, several new tax provisions took effect.
Many Tax Provisions Set to Expire at Year End
Congress’ negotiations over an extension of the reduced payroll tax rate have garnered a lot of media attention, but many other tax items are scheduled to expire at the end of the year, and any future extension of these expiring provisions will have to be retroactive.
IRS PTIN Application System to Go Down for Maintenance
The IRS announced it will not accept new applications for PTINs from 5 p.m. EST Friday, December 23, until approximately 6 a.m. EST on Monday, January 9.
Final Regs on EITC Due Diligence Issued
The IRS issued final regulations governing the due-diligence requirements imposed on tax return preparers who prepare tax returns on which taxpayers claim the earned income tax credit.
IRS Holds First Hearing on Real-Time Tax System
The IRS held a public hearing to gather feedback on how to implement a system in which the IRS would match information on tax returns with data from third-party information returns during the processing of the return.
Tax Return Preparers Win Partial Victory in Fraudulent Credit Scheme Case
A district court found that two tax return preparers who had participated in a fraudulent scheme involving credits for fuel from nonconventional sources did not know the scheme was fraudulent and dismissed the IRS’s requests for injunctions against the preparers.
IRS Issues Details on Fingerprinting and Other Registered Tax Return Preparer Requirements
The IRS provided more details of its still-developing requirements for all paid tax return preparers to be registered and undergo a background check, including fingerprinting.
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.
