The IRS announced that it is extending and modifying a pilot program designed to deter identity theft that allows filers of certain paper information returns to truncate the payee’s Social Security number on the payee statement.
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TOPICS
IRS Practice & Procedure
President Signs Repeal of Expanded 1099 Requirements
The president signed into law repeal of both the expanded Form 1099 information reporting requirements mandated by last year’s health care legislation and also the 1099 reporting requirements imposed on taxpayers who receive rental income enacted as part of last year’s Small Business Jobs Act.
AICPA’s Call for AMT Repeal, Simplification Strikes Chord with Lawmakers
Annette Nellen, chair of the AICPA Individual Income Taxation Technical Resource Panel, pleased some members of Congress when she repeated the AICPA’s support for repeal of the alternative minimum tax (AMT) in testimony before the House Ways and Means Committee on April 13.
Federal Budget Deal Avoids Tax Season Disruptions
White House and congressional negotiators reached an agreement on funding the federal government ahead of a midnight April 8 deadline and averted a shutdown of all nonessential government functions.
IRS Prepared to Process Returns If Government Shuts Down
IRS Commissioner Doug Shulman answered questions at the National Press Club regarding the IRS’ preparations for a possible shutdown of the federal government, which could happen Friday.
Senate Approves 1099 Repeal, Sends Bill to President
The Senate April 5 passed legislation to repeal both the expanded Form 1099 information-reporting requirements mandated by last year’s health care legislation and also new 1099 reporting requirements imposed on taxpayers who receive rental income.
Final Regulations Issued on Validity, Priority of Federal Tax Liens
The IRS published final regulations that govern the validity and priority of federal tax liens under Sec. 6323.
IRS Refocuses Large Business Operations, Highlights International and Global High-Wealth Cases
This item highlights IRS efforts to refocus the work of its former Large and Midsize Business (LMSB) Division, now known as the Large Business and International (LB&I) Division, in an effort to strengthen international compliance.
The Need for Increased Due Diligence in Filing Extensions
This item reviews the requirements for filing for extensions, estimating tax liability, and paying all due tax liabilities.
90-Day Letter Does Not Start If Mail Is Undeliverable, Rules One Court
The Fifth Circuit held that a statutory notice that was mailed to an incorrect address and returned by the Postal Service was null and void
IRS Correspondence Examinations
The IRS has expanded the use of correspondence examinations of individual income tax returns. This item reviews the procedures by which returns are selected for review, how taxpayers should respond to correspondence, and IRS problems with timely response to taxpayer or practitioner letters.
Offshore Voluntary Disclosure Initiative
The IRS announced another special voluntary disclosure initiative designed to bring U.S. persons hiding assets offshore back into the U.S. tax system. This item discusses some of the issues related to the IRS effort to bring U.S. persons into compliance.
Form 5471 Penalties
This item discusses the importance of timely filing federal income tax returns that include Form 5471, regardless of whether the return shows a balance due, because of the extensive penalties for failure to comply with the reporting requirements.
Court-Ordered Restitution Subject of Informal Guidance
In a piece of informal guidance, the IRS Office of Chief Counsel has provided an outline of its understanding of the IRS’s new authority to assess and collect court-ordered restitution for failure to pay tax.
Second Offshore Voluntary Disclosure Program Started
The IRS has announced that it is starting a new program designed to bring money held in foreign accounts back into the U.S. tax system and to help taxpayers with income from offshore accounts comply with federal tax law.
Taxpayer Assistance Order Regulations Issued
The IRS issued final regulations governing National Taxpayer Advocate taxpayer assistance orders when a taxpayer is suffering hardship because of the way the IRS is administering the tax laws.
IRS Issues Final Regs and Guidance on Mandatory E-Filing Requirements
The IRS issued final regulations and several pieces of guidance relating to the requirement that return preparers e-file tax returns, starting this year.
Free File Program Expanded to Include Returns Filed from Overseas
The IRS announced that taxpayers who live in foreign countries can now use the Free File program to prepare and e-file their federal tax returns.
First-Time Homebuyer Credit Recapture Causing IRS Processing Problems
The IRS announced that it is having problems processing tax returns that involve repayment of the Sec. 36 first-time homebuyer credit for 2008 home purchases.
IRS Proposes Extending Period for Receiving Authorization to Disclose Return Information
The IRS issued a proposed regulation that would extend from 60 days to 120 days the permitted period for submission of taxpayer authorizations allowing disclosure of returns and return information to third-party designees.
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.
