Developments since the 1986 Tax Reform Act was signed favor a successful outcome for the current reform effort, said two experts who worked for congressional committees producing the earlier legislation.
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TOPICS / PROCEDURE
Tax Planning; Tax Minimization
Effective Date Amended for Temporary Repair Regulations
The IRS issued technical amendments to address the effective date for the temporary regulations that apply to amounts paid to acquire, produce, or improve tangible property.
Proposed Regs. Would Govern Employment Tax Liability of Third-Party Agents
The IRS released proposed regulations that would govern the liability for employment taxes when an employer designates an agent under a “service agreement” to pay its employees and to satisfy all employment tax obligations.
Voluntary Classification Settlement Program Expanded, Liberalized
The IRS announced significant changes to its Voluntary Classification Settlement Program (VCSP).
Rules Distinguishing Tips From Service Charges Delayed Until 2014
The IRS announced that businesses have additional time to make the changes needed to comply with the proper treatment of tips and service charges.
Guidance Issued on Additional Medicare Tax
The IRS issued proposed regulations concerning the 0.9% Medicare surtax, which takes effect next year.
Who Can or Must File a Form 1099-C?
With taxpayers and businesses defaulting on credit and loans, tax advisers may consider whether their clients should issue a Form 1099-C for a bad debt.
Effective Date of Tangible Property Regs. Delayed
The IRS announced it is delaying the effective date of the temporary regulations it issued in Dec. 2011 governing whether tangible property expenses could be deducted or had to be capitalized.
How Can the Nonpayment Testing Period for COD Income Be Improved?
The IRS asked for comments on whether it should amend existing the rules that require applicable financial entities to issue Forms 1099-C reporting COD income when a 36-month nonpayment testing period has expired.
A Trust Fund Recovery Penalty Primer
This item discusses the basic mechanics of the trust fund recovery penalty, what qualifies someone as responsible for payroll taxes, and what constitutes willfulness.
AICPA Urges Congress to Quickly Fix Tax Cliff
In written and oral testimony, Jeffrey Porter, CPA, addressed the impact of tax uncertainty in several areas and made recommendations on behalf of the AICPA for alleviating some of that uncertainty.
Publicly Traded Property Defined for Determining Issue Price of Debt Instruments
The IRS issued final regulations defining “publicly traded property” to determine the issue price of a debt instrument.
IRS Changes Stance on Application of Sec. 6662 Penalty to Frozen Refundable Credits
The IRS announced that it would no longer impose a penalty under Sec. 6662 for a substantial understatement of tax when a taxpayer claims a refundable tax credit he or she is not entitled to, but the IRS does not pay the refund or approve the credit.
Debtors’ Taxes Are Not Discharged in Bankruptcy Where Tax Return Was Filed Late
A federal appeals court held that bankrupt debtors who filed their income tax return 17 months after their income taxes were assessed were not entitled to have those taxes discharged in the bankruptcy proceeding.
Overstatement of Basis Does Not Extend Assessment Statute of Limitation
The Supreme Court held that extended six-year statute of limitation for assessing a deficiency against a taxpayer where the taxpayer omits an amount in excess of 25% of gross income does not apply to a taxpayer’s overstatement of basis on a return.
Taxes From Postpetition Farm Sale Are Not Dischargeable
The Supreme Court ruled that taxes on gain from the sale of a farm after its owner had filed a Chapter 12 bankruptcy petition were not taxes incurred by the bankruptcy estate.
Tips and Service Charges Distinguished in Guidance
The IRS issued question-and-answer guidance for distinguishing between tips and service charges for FICA tax and other purposes.
Section 530 Relief for Worker Classification Controversies
This article reviews the common law principles and authoritative guidance available to distinguish when workers are employees and the Section 530 safe-harbor provisions.
Basis Reporting Rules for Debt Instruments and Options Postponed for One Year
The IRS postponed the basis and gain reporting rules under Secs. 6045(g), 6045(h), 6045A, and 6045B for debt instruments and options, so they will apply to those acquired on or after Jan. 1, 2014.
Payroll Tax Cut Extended; New Form 941 Released
President Barack Obama signed into law the Middle Class Tax Relief and Job Creation Act of 2012. The IRS released a revised Form 941 to reflect the extended payroll tax cut.
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.
