Common sense and reasonable cause for IRS penalties
One of the biggest, yet most misunderstood, penalty defenses is that a tax position was based on reasonable cause and the taxpayer acted in good faith.
Representations & Examinations
PTIN user fees reinstated
The IRS said it would once again begin charging fees to issue preparer tax identification numbers to return preparers for 2021.
PTIN fees proposed to be lower when reinstated
The IRS has proposed to lower the fee it charges for preparer tax identification numbers (PTINs) when PTIN fees are reinstated.
IRS spotlights requirement to have a written information security plan
The IRS launches fresh efforts to promote awareness of data security issues.
New due-diligence standards for head-of-household filing status
The TCJA and the PATH Act expanded the penalties on tax return preparers who fail to follow due-diligence procedures when clients claim certain credits or head-of-household filing status.
D.C. Circuit reinstates IRS PTIN fee
The IRS has authority to charge a user fee for preparer tax identification numbers, a federal appeals court held, paving the way for the agency to reinstate the charges for obtaining and renewing a PTIN.
IRS can again charge preparers for PTINs
The IRS has authority to charge a fee for obtaining or renewing preparer tax identification numbers.
Court upholds IRS PTIN fees
The IRS has authority to charge a user fee for preparer tax identification numbers (PTINs) a federal appeals court held, paving the way for the agency to reinstate the charges for obtaining and renewing a PTIN.
IRS finalizes tax preparer due-diligence regs.
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.
Paid preparer’s checklist expands to include head-of-household, other tax credit questions
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.
A substantial-authority scorecard and example for excluding Sec. 1202 gain for a carried partnership interest
Keeping a “scorecard” of the weight of authorities on a particular position can be helpful to determine the objective merits of a tax position.
Tax preparer due diligence rules are finalized
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.
D.C. Circuit upholds IRS unenrolled tax preparer program
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.
The Sec. 7525 privilege relating to taxpayer communications
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.
A review of adequate disclosure rules
Practitioners can protect themselves from significant penalties by following the IRS’s ‘adequate disclosure’ procedures.
Practitioners are being asked for personal information by IRS
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.
OPR implements greater transparency in disciplinary investigations
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.
IRS asks for stay on PTIN fees
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.
PTIN registration system reopened
The system had been down since early June, after a federal court held that the IRS cannot charge a PTIN fee.
IRS cannot charge fees for PTINs
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.
