Every year, Congress must renew dozens of expired tax provisions, and taxpayers must anticipate what Congress is going to do each year as they structure their business affairs.
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TOPICS / PROCEDURE
Tax Planning; Tax Minimization
Economic Substance Doctrine Clarified
The IRS provided guidance defining "transaction" for purposes of applying the Sec. 7701(o) economic substance doctrine and "similar rule of law" for purposes of the Sec. 6662(b)(6) accuracy-related penalty.
President Signs Tax Extenders Into Law
President Barack Obama on Friday signed into law the Tax Increase Prevention Act of 2014, which retroactively extends more than 50 expired tax provisions through 2014.
Congress Passes Tax Extender Legislation
The Senate passed a bill to retroactively extend more than 50 expired tax provisions through 2014, by a vote of 76–16 on Tuesday evening. The extender bill passed the House of Representatives on Dec. 3, and it now goes to President Barack Obama for his signature.
Standard Mileage Rates Will Change Slightly in 2015
Optional standard mileage rates for use of a vehicle will change a little for 2015, the IRS announced, with the business use rate going up and the medical and moving rate going down.
Only Gains From Sale of Property Included in Statute-of-Limitation Determination
The Tax Court held that in determining whether the six-year statute of limitation on assessment due to a 25% omission from gross income applied, only the gains, rather than the full amount realized, on the sale of the taxpayers’ investment assets are taken into account.
Social Security Administration Announces 2015 Wage Base
The Social Security Administration announced that the wage base above which OASDI taxes are not due will increase from $117,000 to $118,500 in 2015.
Proposed Regs. Would Eliminate 36-Month Testing Period from COD Reporting Requirements
Because the IRS believes that requiring the filing of Form 1099-C at the expiration of a 36-month nonpayment of debt testing period “creates confusion for taxpayers” and does not increase tax compliance, the Service proposes to eliminate the rule.
Six-Year Statute of Limitation Applies to Assessment
The Tax Court held that the six-year statute of limitation of Sec. 6501(e)(1)(A) applied to an assessment of tax based on a distribution from an ESOP because the taxpayer had not adequately disclosed the distribution on his tax return.
Capital Gain, Not Amount Realized, Determines Application of Six-Year Collection Statute
The Tax Court held that gross income for purposes of Sec. 6501(e) statute of limitation calculations includes only the gain from the sale of investments and not the amount realized from their sale.
New IRS Rules Simplify Compliance for Money Market Fund Shares
The IRS issued guidance that allows a simplified method for calculating gain or loss on shares in MMFs subject to the new rules and exempts redemptions of shares in these MMFs from the wash sale rules
When Do Sec. 6402 Offsets Trigger the Refund Limitation Period?
It is critical to determine the date on which a liability satisfied by credit of an overpayment is considered to have been paid.
Tax Simplification: Key to Fighting Tax Return Identity Theft
Identity theft and tax simplification are high priorities for members of Congress, the IRS, and all taxpayers. Though most people think the issues are unrelated, one potential way to decrease identity theft and preparer fraud is tax simplification.
Final Rules Involve Disregarded Entities, Indoor Tanning Tax, and FICA and FUTA Exemptions
The IRS finalized rules on the disparate topics of disregarded entities that collect the excise tax on indoor tanning and how certain exceptions from FICA and FUTA taxes work when a disregarded entity is involved.
Bitcoins Are Property, Not Currency, IRS Says
The IRS issued its first guidance on the tax treatment of bicoins.
Regs. Clarify Employment Tax Responsibilities of Designated Payer Agents
Final regulations issued by the IRS contain rules on the liability for employment taxes when an employer designates an agent under a “service agreement” to pay its employees and to satisfy its employment tax obligations instead of following normal IRS procedures to designate an agent.
Tax Lawyer: Code Reform Stymied by Dysfunctional Congress
Passage of major tax reform legislation appears unlikely soon, partly because of partisan gridlock in Congress as bad as any in the past century and a half, a noted tax lawyer told the AICPA Council.
New Guidance Clarifies Tax Treatment of Bitcoin and Other Virtual Currencies
The IRS issued its first guidance on the tax rules that apply to virtual currencies, in the form of 16 questions and answers.
Form 1099-B and the New Adjusted Tax Basis and Sales Proceeds Reporting Rules for Brokers
This item focuses on the general taxation of debt instruments and provides an overview of the new reporting requirements and the implications they raise.
Final Regs. Permit Agents to Withhold FUTA for Home Care Service Recipients
The IRS issued final regulations permitting an agent authorized by the IRS under Sec. 3504 to perform certain acts normally required of employers to withhold FUTA taxes owed by home care service recipients.
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.
