Representations & Examinations
Practitioners should be aware of changes to the due-diligence requirements for returns that claim the earned income tax credit, the American opportunity tax credit, and/or the child tax credit.
Keeping a “scorecard” of the weight of authorities on a particular position can be helpful to determine the objective merits of a tax position.
The IRS issued final regulations on the penalty that applies to tax return preparers who fail to exercise due diligence in preparing returns for taxpayers who are claiming head-of-household filing status, the earned income tax credit, the child tax credit, the additional child tax credit, or the American opportunity tax credit.
The Court of Appeals for the D.C. Circuit held that the AICPA had standing to challenge the IRS’s Annual Filing Season Program for unenrolled tax preparers but further held that the program did not violate the Administrative Procedure Act.
CPAs can protect tax advice to clients from disclosure by understanding the scope of the Sec.
7525 practitioner-client privilege, when it applies, and what actions can cause a waiver of this
key protection.
Practitioners can protect themselves from significant
penalties by following the IRS’s ‘adequate disclosure’
procedures.
The IRS is now asking taxpayer representatives who call the agency to provide their Social Security number and date of birth to confirm their identity.
The IRS’s Office of Professional Responsibility has implemented a new process for informing practitioners that they are under investigation for violations of Circular 230.
If granted, the stay would allow the IRS to charge the fees while it decides whether to appeal the district court decision that struck down the fees and, if it does appeal, during the appeal itself.
The system had been down since early June, after a federal court held that the IRS cannot charge a PTIN fee.
The D.C. District Court held that the IRS has the authority to require preparers to use preparer tax identification numbers but that it cannot charge fees for issuing PTINs.
President Donald Trump’s proposed FY 2018 budget includes a new proposal to give the IRS authority to regulate paid tax return preparers.
If granted, the stay would allow the IRS to charge the fees while it decides whether to appeal the district court decision that struck down the fees and, if it does appeal, during the appeal itself.
Relying on a tax professional does not guarantee that the penalty will be removed for a taxpayer.
The system had been down since early June, after a federal court held that the IRS cannot charge a PTIN fee.
The D.C. District Court held that the IRS has the authority to require preparers to use preparer tax identification numbers (PTINs) but that it cannot charge fees for issuing PTINs.
The IRS OPR has no authority or jurisdiction over a disbarred attorney/tax preparer or his tax preparation practice and cannot regulate his provision of tax advice, a federal district court in Nevada has held.
President Donald Trump’s proposed FY 2018 budget includes a new proposal to give the IRS authority to regulate paid tax return preparers.
The IRS suspended the e-Services accounts of users who failed to verify their identities.
The IRS alerted tax practitioners that it plans to publish their registration information online.
