The IRS announced that it is discontinuing the high-low method for substantiating lodging, meal and incidental expenses incurred in traveling away from home.
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IRS Practice & Procedure
Comments Sought on IRS Continuing Education Provider Standards and Process
The IRS on July 18 invited public comments on its process for approving continuing education providers and on the standards that should apply to such providers.
Economic Substance Guidance Issued to IRS Examiners
The IRS Large Business and International (LB&I) Division issued guidance to examiners on the newly codified economic substance doctrine limiting the application of penalties relating to the doctrine.
100,000 Preparers Did Not Comply with PTIN Rules
The IRS announced that it has identified approximately 100,000 tax return preparers who did not comply with the new rules for preparer tax identification numbers (PTINs), and it is sending them letters informing them of the problem.
AICPA Offers Guidance on Registered Preparer Competency Exam
In a July 7 letter to IRS Commissioner Doug Shulman, the AICPA offered its perspective on the agency’s development of the registered tax return preparer examination.
Penalty Relief for Delinquent FBARs and Forms 5471 Ends August 31
The IRS has provided penalty relief in guidance related to its latest offshore voluntary disclosure initiative. The focus of this item is on who qualifies for penalty relief and procedures for obtaining this relief.
Restricted Interest and Common Errors Made by the IRS
The Internal Revenue Code allows the IRS to charge interest when a taxpayer does not pay all required taxes by the due date of the return. The Code also requires the IRS to pay interest on refunds in certain circumstances. This item discusses the many nuances related to the computation of interest that tax professionals should be familiar with.
Changes in the Lien Process and the Importance of Lien Withdrawals
This item discusses changes in the IRS’s lien process policy. The IRS has made it easier for taxpayers to obtain lien withdrawals after their tax bills are fully satisfied, but this relief is not automatic:
IRS Matching Program for Forms 8023 and 8883 May Result in Invalid Sec. 338 Election
The IRS recently launched a program to match the filing of Form 8023, Elections Under Section 338 for Corporations Making Qualified Stock Purchases, by a foreign purchasing corporation acquiring a foreign target, with Form 8883, Asset Allocation Statement Under Section 338, to report the effect of the Sec. 338 election.
Special Limitation Periods for Carryback Assessments
By exercising its setoff authority, the IRS has been able to achieve the same limitation period in Form 1120X carryback situations as in tentative refund cases with Form 1139.
IRS Makes Dodd-Frank Mandated Language Changes to Regulations
To comply with requirements of the Dodd-Frank Act, the IRS has issued temporary and proposed regulations that remove all references to “credit ratings” from the Treasury regulations.
IRS Challenges Noted by Oversight Board
The IRS Oversight Board described the IRS’s performance during FY 2010, its progress in meeting its goals, and the challenges the IRS has faced in recent years in administering new tax laws enacted to provide economic relief during the recession.
Truncated Social Security Number Program Extended
The IRS announced that it is extending and modifying a pilot program allowing filers of certain paper information returns to truncate the payee’s Social Security number on the payee statement.
The Administration’s Fiscal-Year 2012 Revenue Proposals
This column reviews proposals for the FY 2012 U.S. federal budget, with a focus on a number of tax administration initiatives being proposed by the Obama administration.
Memo Addresses Treatment of Fraudulently Altered Returns
The Office of Chief Counsel advised on a number of issues regarding returns where a preparer, after issuing the taxpayers refund anticipation loans, increased the amount of the charitable contribution deductions claimed on the returns without the taxpayers’ knowledge or consent to increase the refund received from the IRS.
IRS Finalizes Automatic Five-Month Extension for Partnership, Trust and Estate Returns
Final regulations set the time for automatic extensions of partnership, trust and estate income tax returns at five months (T.D. 9531). Under this rule, the extended returns and Schedules K-1 for partners and beneficiaries will generally be due September 15.
House Passes Bill with Tax Patent Provision, Sends Back to Senate
The House of Representatives passed the America Invents Act (H.R. 1249), which includes a provision intended to stop the granting of patents for tax strategies.
IRS Publishes Interim Guidance on Stock Basis Reporting
On June 22, the IRS issued interim guidance on issues relating to the basis of stock subject to broker reporting.
Fourth Circuit Upholds Two-Year Innocent Spouse Limitation Period
The Fourth Circuit overturned a Tax Court decision and upheld a Treasury regulation that sets a two-year statute of limitation on claims for innocent spouse relief.
Why the Flap Over a VAT?
This item provides a view of issues that would need to be considered if the United States were to consider adopting a value-added tax (VAT) at the federal level.
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.
