The Supreme Court affirmed that the extended six-year statute of limitation, which applies when a taxpayer “omits from gross income an amount properly includible” in excess of 25% of gross income, does not apply when a taxpayer overstates its basis in property it has sold.
Advertisement
TOPICS / PROCEDURE
Tax Planning; Tax Minimization
President’s Budget Proposes AMT Elimination, Tax Reform
President Barack Obama unveiled his proposed budget for FY 2013. It includes several tax reform proposals, including plans to eliminate the AMT, to repeal LIFO, and to tax dividends of high-income taxpayers at ordinary income rates.
Government Contractor Withholding Repealed and Veterans Job Credits Enacted
President Barack Obama signed into law repeal of a requirement that 3% of payments to any person for services or property be withheld by the federal or state governments or their instrumentalities or subdivisions (including multistate agencies).
IRS Launches Worker Classification Settlement Program
The IRS unveiled a program that allows taxpayers to voluntarily reclassify independent contractors as employees and pay significantly reduced prior employment taxes, with no penalties or interest.
Form Debuts for January 17 Stock Basis Change Reporting Deadline
The IRS released new Form 8937, Report of Organizational Actions Affecting Basis of Securities, and its instructions. The deadline for filing the form for 2011 is next Tuesday, January 17.
Worker Classification Issues on Washington Agenda
Worker classification issues have become a major tax administration focus in our nation’s capital over the past few months.
IRS, DOL, Several States to Share Data on Worker Classification
The DOL and the IRS agreed to share information and coordinate law enforcement “to end the business practice of misclassifying employees in order to avoid providing employment protections.”
Patent Reform Act Stops New Tax Strategy Patents
On September 16, President Barack Obama signed into law the Leahy-Smith America Invents Act, which reforms the U.S. patent system and stops the granting of patents for tax strategies.
President Signs Bill Increasing EITC Due Diligence Penalty
President Barack Obama signed into law a bill that increases from $100 to $500 the penalty for failure by preparers to exercise due diligence with respect to the EITC.
Statute of Limitation: Individuals and U.S.-Source Income
This item describes some of the unusual situations that arise under federal income tax statutes of limitation.
Sec. 1031 Related-Party Exchanges and Basis Shifting
The Code provides a number of related-party exceptions designed to circumvent certain abuses, the most prevalent of which is basis shifting. This item discusses ways that practitioners can avoid basis-shifting problems.
IRS Updates, Clarifies Travel Allowances, Reinstates High-Low Method
The IRS issued an update and new guidance for use of a federal per diem rate to substantiate the amount of ordinary and necessary expenses for lodging, meals and incidental costs paid or incurred for business-related travel away from home.
IRS Offers Voluntary Employee Reclassification Program
Employers may reclassify independent contractors as employees and limit the resulting federal payroll taxes for their most recent tax year, plus avoid related penalties and interest for prior years, under an IRS program announced September 21.
President Signs Patent Reform Bill Banning New Tax Strategy Patents
President Barack Obama signed into law the Leahy-Smith America Invents Act (H.R. 1249), which reforms the U.S. patent system and stops the granting of patents for tax strategies.
President’s Jobs Bill Contains Many Tax Proposals
The president submitted his American Jobs Act to Congress on September 12, and among its provisions are several tax items, including a temporary payroll tax cut, a limit on itemized deductions for certain high-income taxpayers, and a proposal to tax carried interests as ordinary income rather than capital gains.
Congress Passes Tax Patent Reform; Sends Bill to President
The Senate passed the America Invents Act which now goes to President Barack Obama for his signature. The act reforms the U.S. patent system, and among its provisions is one intended to stop the granting of patents for tax strategies.
IRS Discontinues High-Low Method for Substantiating Travel Expenses
The IRS announced that it is discontinuing the high-low method for substantiating lodging, meal and incidental expenses incurred in traveling away from home.
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.
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.
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.
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.
