This appendix provides a more detailed suggested solution to the five questions presented in the Feb. 2012 Campus to Clients column.
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TOPICS
IRS Practice & Procedure
Government Contractor Withholding Repealed and Veterans Job Credits Enacted
President Barack Obama signed into law repeal of a requirement that 3% of payments to any person for services or property be withheld by the federal or state governments or their instrumentalities or subdivisions (including multistate agencies).
IRS Nonacquiesces to Tax Court Fraud Holding
The IRS nonacquiesced to the Tax Court’s decision in Norris because the IRS believes that the Tax Court improperly used a “rigid” 11-factor test to determine the existence of fraud instead of making the determination by considering the taxpayer’s entire course of conduct.
Integrating Circular 230 into the Tax Curriculum
Circular 230 is crucial to tax education because it forms the ethical standards of tax practice. Students who plan to become tax practitioners must become well acquainted with Circular 230 along with the underlying laws and regulations governing tax practice.
Circular 230: Its Day-to-Day Impact on Tax Practices
While discussions about Circular 230 usually focus on the standards it imposes relating to tax returns and opinions, the breadth and scope of Circular 230 also regulates the day-to-day business operations of tax practitioners relating to fees, client solicitations, marketing and advertising, and the management of client files and records.
IRS Launches Worker Classification Settlement Program
The IRS unveiled a program that allows taxpayers to voluntarily reclassify independent contractors as employees and pay significantly reduced prior employment taxes, with no penalties or interest.
Streamlined Installment Agreement Program Modified
The IRS Small Business/Self-Employed Division modified the maximum unpaid balance of assessment taxpayers must meet to qualify for its streamlined installment agreement program and extended the time for payment.
IRS: Tax Preparers Who Want to Prepare 2011 Returns Must Renew PTINs
The IRS is sending information letters to tax return preparers who have not yet renewed their preparer tax identification numbers (PTINs) for the 2012 filing season.
Annual Update on Adequate Disclosure of Return Positions Issued
The IRS released updated guidance 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.
IRS Gives Transitional Relief to Form 8937 Filers
The IRS announced that, due to its late release of the required form, it will not impose penalties on issuers of stock who report incorrect 2011 information required under Sec. 6045B, as long as they make a good-faith effort to timely comply with the requirements.
Form Debuts for January 17 Stock Basis Change Reporting Deadline
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.
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.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
