The Treasury Department announced a pilot program of prepaid debit cards to allow taxpayers without bank accounts to receive their tax refunds more quickly.
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IRS Practice & Procedure
IRS Oversight Board Releases Latest Taxpayer Attitude Survey Results
The IRS Oversight Board has released the results of its 2010 Taxpayer Attitude Survey showing that taxpayers feel that income tax cheating is unacceptable and are generally satisfied with their personal interaction with the IRS.
PTINs a Pain for Some CPAs
As the start of tax filing season looms, some CPA preparers are reporting difficulties meeting the new IRS requirement to register and obtain or renew a PTIN.
Refund Options for the 2011 Filing Season
Over time, the options for receiving refunds have expanded to include direct deposit, refund anticipation loans, and splitting refunds among multiple accounts.
IRS Faulted for Failure to Send Notice to Last Known Address
The Fifth Circuit held that for purposes of the starting date of the limitation period for filing a Tax Court petition, a notice of determination that is returned to the IRS as undeliverable is null and void if the IRS did not exercise reasonable diligence to determine the taxpayer’s correct address.
Check-the-Box Relief for Certain Foreign Entities Electing Flowthrough Treatment
The IRS provided relief to certain foreign eligible entities that made erroneous entity classification elections (check-the-box elections) based on a mistaken understanding of the number of owners as of the effective date of the election.
PTIN Application Process for Preparers Without a Social Security Number
The IRS provided a process for individuals without a Social Security number to obtain a preparer tax identification number (PTIN).
Is There Still Time to Correct IRS Interest Mistakes?
If the IRS does not refund the correct interest, what is the statute of limitation for a claim for additional interest? What is statute of limitation for a claim for refund for interest netting and how long the IRS has to assess the correct amount of deficiency interest? The answers to these questions may surprise even experienced tax professionals.
IRS Releases Procedures Allowing Appeals Review of International Penalties Prior to Payment
The IRS has made it a priority to improve voluntary compliance with the international tax provisions and to reduce the tax gap attributable to international transactions. This focus on international compliance has led to increased enforcement of international information-reporting requirements and the associated penalties.
IRS Introduces Final Schedule UTP with Modifications
The issuance of a final schedule and instructions makes it important for companies with assets of $100 million or more that issue audited financial statements to prepare for filing the Schedule UTP with their 2010 tax returns.
Prop. Regs. Would Eliminate Paper Coupons for Federal Tax Deposits
The IRS has issued proposed regulations that, effective in 2011, would eliminate the option of making federal tax deposits by paper coupon. Going forward, taxpayers must submit all federal tax deposits using the Electronic Federal Tax Payment System (EFTPS).
Form W-2 Reporting Requirement Extended for Employer-Sponsored Group Health Plans
The IRS announced that employers will not be required to report the cost of employer-sponsored coverage on Forms W-2, Wage and Tax Statement, issued for 2011, due to the difficulty in preparing payroll systems for the requirement.
IRS Releases Some Annual Inflation Adjustments, Many Unchanged for 2011
The IRS released its annual revenue procedure making inflation adjustments for various credits and other tax items.
IRS Exempts CPA-Supervised Nonsigners From New Preparer Rules
The IRS released guidance on the implementation of new regulations governing tax return preparers, and provided an exception to its return preparer regulation plan for nonsigning preparers supervised by a CPA, attorney, enrolled agent or other Circular 230 practitioner.
Tax Law Changes Will Delay Start of Filing Season for Some Taxpayers
The IRS is warning taxpayers that it will not be accepting certain 2010 individual tax returns until mid- or late February, due to tax law changes recently enacted by Congress.
IRS Releases 2011 Tax Tables and Other Inflation Adjustments
The IRS released the 2011 tax rate tables and other inflation adjustments, which it had been holding while waiting for Congress to resolve various tax issues.
Congress Resolves Many Tax Issues During Lame-Duck Session
Congress adjourned its year-end lame-duck session on December 22 after passing legislative fixes for several pending tax issues, including the estate tax, the expiration of the 2001 and 2003 tax cuts, an alternative minimum tax (AMT) patch, and extensions of many expired provisions. However, it failed to repeal the expanded Form 1099 reporting requirements that were enacted as part of this spring’s health care reform legislation.
Senate Approves Tax Cut Extender Bill
The Senate voted 81–19 in favor of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
Provisions in the Senate’s Tax Cut Extension Bill
Senate Majority Leader Harry Reid, D-Nev., introduced legislation on December 9 that would postpone the sunset of the 2001 and 2003 tax cuts, reduce the estate tax, and extend a number of expired provisions, as well as extending unemployment benefits.
Security Replaces Modernization as Top IRS Challenge
In its 2011 annual report, TIGTA said security is the top management challenge facing the IRS.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
