Penalties

IRS Tightens Penalty Relief

Recent IRS actions suggest a movement away from granting penalty relief. Recent budget cuts, furloughs, and negative press have exacerbated the trend by significantly decreasing IRS resources, resulting in slower responses to taxpayer inquiries.

Sec. 6708 Regs. Permit Material Advisers to Request Extension

The IRS issued proposed regulations governing the penalty for failure of material advisers to provide lists of advisees in reportable transactions, which applies if the advisers do not supply the lists to the IRS within 20 business days after a written request.

IRS Announces Abatements of Frivolous Filing Penalty

Taxpayers who have filed all required tax returns and paid all outstanding tax liabilities, including penalties (except for the Sec. 6702 penalty) and related interest, may qualify for a one-time reduction to $500 of any unpaid penalties that the IRS has assessed (Rev. Proc. 2012-43).

Rev. Proc. Updates Guidance on Adequate Disclosure of Return Positions

The IRS released its annual update identifying when a taxpayer’s disclosure of an item or position in an income tax return is adequate for purposes of reducing the understatement of tax penalty and the tax return preparer penalty for understatement due to unreasonable positions.

Newsletter Articles

SPONSORED REPORT

Get your clients ready for tax season

With the extended 2017 tax filing season drawing to a close, now is the time to get your practice and your clients ready for the 2018 season.

PRACTICE MANAGEMENT

2016 Best Article Award

The winners of The Tax Adviser’s 2016 Best Article Award are Edward Schnee, CPA, Ph.D., and W. Eugene Seago, J.D., Ph.D., for their article, “Taxation of Worthless and Abandoned Partnership Interests.”