Legal hemp and deductible expenses
Marijuana businesses are unable to deduct most ordinary business expenses. However, COGS is allowable as an adjustment to gross receipts.
IRS Practice & Procedure
R&D tax credit: Don’t leave money on the table
Many taxpayers do not realize that the R&D tax credit is available to businesses of all sizes in many lines of business, not just major corporations conducting tests in research laboratories.
Fraudulent intent lands CPA in hot water
A CPA taxpayer was found to have fraudulent intent in various tax minimization schemes he engaged in.
Per-diem method clarified in light of TCJA changes
The IRS issued updated rules for substantiating the amount of ordinary and necessary business expenses paid or incurred while traveling away from home using the per-diem rates.
IRS commissioner seeks to enhance taxpayer contacts, target enforcement
Speaking to the AICPA National Tax Conference in Washington, IRS Commissioner Charles Rettig discussed possible IRS restructuring, more-targeted enforcement efforts and IRS use of data analytics.
IRS posts 2020 inflation adjustments and tax tables
The IRS released the 2020 tax tables for individuals and estates and trusts, as well as the inflation adjustments for over 60 tax provisions for 2020 tax returns.
New IRS compliance campaigns
LB&I recently announced it was adding six new compliance campaigns to its list of areas on which to focus its examinations.
IRS issues Q&As on Sec. 965 transfer and consent agreements
The IRS released guidance to further recap and clarify the rules for transfer and consent agreements.
TIGTA reports large increase in alimony tax gap
Discrepancies between the amount of alimony deducted by payers and reported as income by its recipients increased by 38% in six years, the Treasury Inspector General for Tax Administration reported.
TIGTA outlines IRS challenges for 2020
The memorandum lists 10 challenges in order of importance, ranging from data security to achieving operational efficiencies.
IRS allows taxpayers to change their minds on bonus depreciation
The IRS will permit taxpayers to change their bonus depreciation treatment for property acquired after Sept. 27, 2017, and placed in service during a tax year that includes Sept. 28, 2017.
Taxpayer First Act provision prompts IRS to change its third-party contact procedures
The IRS issued updated procedures for third-party contacts to reflect changes enacted in the recent Taxpayer First Act, requiring the IRS to notify taxpayers at least 45 days before it contacts a third party to determine or collect a tax.
Taxpayer First Act changes the dynamic between IRS and practitioners
The law signed in July is aimed at enhancing taxpayer rights and improving customer service.
Substitute-for-returns procedure
Taxpayers who fail to file tax returns may receive assessments from an IRS-prepared substitute for return.
Reliance on preparer is not reasonable cause for late filing
The advent of e-filing has not changed the rule that reliance on a preparer to file a return is not a reasonable cause for a taxpayer’s failure to file a timely return.
IRS practitioner services and AICPA’s ongoing advocacy for improvement
The AICPA pushes for investments in IRS-practitioner communications that could reduce compliance burdens for millions of taxpayers.
Regulations clarify bonus depreciation treatment
The IRS issued final regulations and new proposed regulations on the 100% bonus depreciation deduction that was amended by the law known as the Tax Cuts and Jobs Act.
Corporations have short period to apply for IRS CAP program
The IRS announced that it is opening its Compliance Assurance Process (CAP) program to new applicants for the first time in years, but applications must be made between Sept. 16 and Oct. 31.
Congress approves IRS reform legislation
The bill establishes an independent appeals office and requires the IRS to develop a customer service strategy. A controversial provision codifying the Free File program was dropped from the bill.
Truncated TINs are permitted under final regulations
As part of its effort to reduce identity theft, the IRS issued final rules permitting employers to provide truncated taxpayer identification numbers on Forms W-2, Wage and Tax Statement, they provide to employees.
