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:
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IRS Practice & Procedure
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.
The Current State of the Rescission Doctrine
The IRS has demonstrated flexibility in its application of the rescission doctrine to unwind transactions.
Revenue Procedure Attempts to Clarify Entity Classification Election
For federal tax purposes, certain entities can elect passthrough tax treatment by simply checking the box. As this item points out, checking the box for passthrough treatment is not so simple if the taxpayer is uncertain about whether the entity has more than one member.
Expanded 1099 Reporting Requirements Repealed
The Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 repeals 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.
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. The final regulations require specified tax return preparers to e-file if they reasonably expect to file 100 or more income tax returns in 2011.
Lack of Control Does Not Except Owners from Trust Fund Recovery Penalty
The owners of a company who had delegated payroll functions to a separate payroll company they owned but did not operate were liable for trust fund recovery penalties because they were responsible persons both before and after the withholding taxes that were the basis of the penalties accrued.
IRS Finalizes Circular 230 Regulations
The IRS issued final regulations May 31 implementing components of its initiative to register and regulate all paid tax return preparers.
Treasury Releases Plan to Review All Regulations
The Treasury Department on May 26 released a plan to review all existing Treasury regulations and identify those that are “obsolete, unnecessary, excessively burdensome, or ineffective.”
TAX PRACTICE MANAGEMENT
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