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.”
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TOPICS
IRS Practice & Procedure
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.
IRS Examinations of Small Businesses and Their Electronic Accounting Files
In 2010, the IRS SB/SE Division expanded its enforcement capabilities by requesting the electronic accounting software files of small businesses under examination.
IRS Launches New Round of Preparer Office Visits
The IRS has sent letters to tax return preparers whom the IRS has identified as at high risk of not complying with their responsibilities as return preparers. The IRS will follow up with office visits to some of these preparers who appear to have serious compliance issues.
Competency Testing for Registered Tax Return Preparers Set to Start
As part of its ongoing initiative to regulate previously unenrolled tax return preparers, the IRS announced on November 22 that competency testing for registered tax return preparers will start next week.
Shulman Announces Delay in Fingerprinting Requirement
The IRS will delay and reconsider its fingerprinting requirement for tax return preparers, IRS Commissioner Doug Shulman told the AICPA National Tax Conference on November 8.
The Codified Economic Substance Doctrine and Related Penalties
The IRS issued a directive providing details on a multistep process that examiners must follow before the ultimate application of the economic substance doctrine in an examination. It also provides guidance on related penalties that might be imposed upon the application of the doctrine.
Employers Immune from Suit for Complying with IRS Levy
This item addresses an employer’s rights and responsibilities when required to comply with an IRS wage levy against an employee.
IRS Revamps Lien Procedures to Help Struggling Taxpayers
The IRS has revised its tax lien filing practices and provisions.
Offers in Compromise and the Consideration of Dissipated Assets
This item reviews the qualification requirements for an offer in compromise, a form of administrative relief offered to financially distressed taxpayers with outstanding tax liabilities who are unable to satisfy their obligations to the government.
Final Regs. Issued on Reportable Transaction Penalties
The IRS issued final regulations governing the Sec. 6707A penalty regime for failure to report reportable transactions, to reflect changes made by the Small Business Jobs Act of 2010.
Conflicts of Interest: IRS Rules Differ from AICPA Professional Standards
Circular 230 forbids federal tax practitioners from having conflicts of interest, defined as representation of one client that is directly adverse to that of another client, or representing a client in circumstances creating a significant risk that the representation of one or more clients will be materially limited by the practitioner’s responsibilities to another client, a former client, or a third person or by a personal interest of the practitioner.
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.
