The IRS issued guidance on filing a protective claim for refund of estate tax and notifying the IRS that the claim is ready for consideration.
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TOPICS
IRS Practice & Procedure
Trade Bills Pass Congress with Tax Provisions
The EITC due diligence penalty will increase to $500 under a bill passed by Congress Oct. 12.
TIGTA Finds Problems with IRS Purchase Cards, Network Security
TIGTA released a pair of reports finding problems with the security of the IRS Windows environment and a lack of control over IRS purchase cards.
Practitioners Raise Concerns About Fingerprinting Proposal at IRS Hearing
The IRS heard a consistent chorus at an October 7 hearing on proposed fees for fingerprinting of registered tax return preparers and nonsigning staff at CPA firms: The IRS’ proposal is duplicative, expensive, and can be done in a better way.
IRS Proposes Stiffer Preparer Requirements for EITCs
The IRS issued proposed regulations that would impose new requirements for tax return preparers and their firms for returns claiming the earned income tax credit (EITC), including submission of information regarding taxpayers’ eligibility to the IRS.
Internal IRS Guidance Released on the Application of the Economic Substance Doctrine
The IRS issued an important directive to its examiners on how the codified economic substance doctrine and the new penalty associated with it should be applied to cases in the field (LB&I-4-0711-015).
How to Benefit from the Internal Revenue Manual
Knowledge of IRS procedures documented in the Internal Revenue Manual can help tax practitioners in many areas.
Statute of Limitation: Individuals and U.S.-Source Income
This item describes some of the unusual situations that arise under federal income tax statutes of limitation.
Sec. 1031 Related-Party Exchanges and Basis Shifting
The Code provides a number of related-party exceptions designed to circumvent certain abuses, the most prevalent of which is basis shifting. This item discusses ways that practitioners can avoid basis-shifting problems.
Use of Private Delivery Services to Provide Evidence of Delivery to the IRS
The IRS issued final regulations providing guidance on how taxpayers can prove the timely delivery of physical documents to the IRS and the Tax Court, absent direct proof of delivery (T.D. 9543).
IRS PTIN Renewal Process Opens in October
Beginning in October 2011, the IRS PTIN database will be available for CPAs (and their employees) to obtain or renew their PTINs for the 2012 filing season.
IRS Updates, Clarifies Travel Allowances, Reinstates High-Low Method
The IRS issued an update and new guidance for use of a federal per diem rate to substantiate the amount of ordinary and necessary expenses for lodging, meals and incidental costs paid or incurred for business-related travel away from home.
IRS Issues Guidance on Fingerprinting, Other Registered Tax Return Preparer Details
The IRS provided more details September 22 of its still-developing requirements for all paid tax return preparers to be registered and undergo a background check, to include fingerprinting.
IRS Offers Voluntary Employee Reclassification Program
Employers may reclassify independent contractors as employees and limit the resulting federal payroll taxes for their most recent tax year, plus avoid related penalties and interest for prior years, under an IRS program announced September 21.
President Signs Patent Reform Bill Banning New Tax Strategy Patents
President Barack Obama signed into law the Leahy-Smith America Invents Act (H.R. 1249), which reforms the U.S. patent system and stops the granting of patents for tax strategies.
President’s Jobs Bill Contains Many Tax Proposals
The president submitted his American Jobs Act to Congress on September 12, and among its provisions are several tax items, including a temporary payroll tax cut, a limit on itemized deductions for certain high-income taxpayers, and a proposal to tax carried interests as ordinary income rather than capital gains.
IRS Issues Accounting Software Examination Guidance, Meets with AICPA
The IRS Small Business/Self-Employed Division issued guidance for its field examiners on when to request backup files of taxpayers’ accounting software during an examination, what the limits are on reviewing those electronic files, and how examiners must safeguard those records.
Congress Passes Tax Patent Reform; Sends Bill to President
The Senate passed the America Invents Act which now goes to President Barack Obama for his signature. The act reforms the U.S. patent system, and among its provisions is one intended to stop the granting of patents for tax strategies.
Reportable Transaction Penalty Gets Final Regulations
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.
IRS Expands Hurricane Irene Relief
The IRS expanded its Hurricane Irene relief to include four counties in Vermont, after the president declared those counties federal disaster areas.
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.
