The Supreme Court ruled that taxes on gain from the sale of a farm after its owner had filed a Chapter 12 bankruptcy petition were not taxes incurred by the bankruptcy estate.
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IRS Practice & Procedure
IRS Releases New FAQs for Offshore Voluntary Disclosure Program, Announces Other Rules
The IRS released 55 questions and answers regarding its offshore voluntary disclosure program.
IRS Suspends Issuing ITINs Without Original Documentation
The IRS will no longer issue individual taxpayer identification numbers unless the applicants provide original documents, such as passports or birth certificates, or certified copies of those documents from the issuing agencies.
Tips and Service Charges Distinguished in Guidance
The IRS issued question-and-answer guidance for distinguishing between tips and service charges for FICA tax and other purposes.
Eleventh Circuit Says PTIN User Fees Are Valid
The Eleventh Circuit held that the fee the IRS charges to issue PTINs to tax return preparers, who are required to use the PTINs on returns they prepare, is valid
IRS Withholding Tax Enforcement: Dropping the Other Shoe?
Despite a hefty price for noncompliance—including secondary liability for the withholding tax, interest, and various penalties—U.S. companies have yet to master the science of cross-border withholding.
Priority Phone Service Created for Correspondence Audits
The IRS has launched a new toll-free phone service for tax professionals to use when responding to correspondence examination telephone calls or letters.
IRS Reorganizes Transfer Pricing Programs
The IRS has reorganized its advance pricing agreement (APA), mutual agreement, and competent authority programs into one new program.
Section 530 Relief for Worker Classification Controversies
This article reviews the common law principles and authoritative guidance available to distinguish when workers are employees and the Section 530 safe-harbor provisions.
Mailbox Rule Does Not Apply Where Taxpayer Cannot Prove Mailing
The First Circuit dismissed a suit for refund of Federal Insurance Contributions Act (FICA) taxes Maine Medical Center mistakenly paid for its medical residents in the 2001 tax year.
IRS to Close Offices as Part of Administration’s Cost-Cutting Efforts
The IRS announced that 43 smaller offices will be closed and space in many larger facilities will be reduced
Offer in Compromise Rules Made More Flexible in Expansion of Fresh Start Program
The IRS announced that it is making the terms under which it will accept offers in compromise more flexible.
TIGTA and Congress Focus on Identity Theft and Tax Fraud
The House Ways and Means Oversight and Social Security Subcommittees held a hearing on tax fraud involving identity theft and TIGTA released a report saying the IRS does not handle identity theft issues well.
Terms in OIC Agreement Take Meaning From Code, Court Holds
The Second Circuit held that the terms “refund” and “overpayment” in an OIC agreement are specialized tax terms that take their meaning from the Code and are not given their “plain English” meanings, despite the colloquial tone of the agreement.
Basis Reporting Rules for Debt Instruments and Options Postponed for One Year
The IRS postponed the basis and gain reporting rules under Secs. 6045(g), 6045(h), 6045A, and 6045B for debt instruments and options, so they will apply to those acquired on or after Jan. 1, 2014.
Accuracy-Related Penalty Tested in Five Recent Cases
In five recent cases, the Tax Court tested the defenses of various taxpayers to the imposition by the IRS of accuracy-related penalties for substantial understatements of income tax.
Interpretations of SSTS No.1, Tax Return Positions
Recently issued revised and updated interpretations of the AICPA’s SSTS No.1, Tax Return Positions, provide guidance to practitioners on tax reporting standards when recommending return positions or preparing or signing returns.
Due Diligence Update
This column discusses the tax professional’s due-diligence obligations under SSTS No. 3 and Circular 230.
Taxpayers to Be Required to Update EIN Information
The IRS issued proposed regulations that would require taxpayers that obtain employer identification numbers (EINs) to update their information with the IRS.
Filing False Tax Return Leads to Deportation Charge
The Supreme Court held that filing a false tax return or aiding and abetting in the preparation of a false tax return are offenses that can subject permanent resident aliens to deportation as aliens who have been convicted of an aggravated felony.
INDIVIDUALS
Current Developments in Taxation of Individuals: Part 1
This update surveys recent federal tax developments involving individuals, including court cases, rulings, and guidance issued during the six months ending October 2025.
