This is the one-stop shop for all the updates you need to know for this year’s tax filing season. Find resources from the JofA and The Tax Adviser, plus tax return checklists and tax savings tips from the AICPA, categorized by tax topic.
INDIVIDUAL TAX
IRS Reports
Average Refund Size Is Up in 2010
March 23, 2010
The
IRS reported preliminary statistics for this tax season that show
the average size of a refund has increased this year compared with
last year. However, the total number of returns filed has
decreased and e-filing is essentially flat.
IRS Web Lookup for
Recovery Payments Coming Soon; Automated Phone Service Now
Available
March 10, 2010
The
IRS has established an automated telephone service to confirm
whether taxpayers received an economic recovery payment in 2009.
The Service also said on its Web site that it will provide a
Web-based service, “Did I Receive a 2009 Economic Recovery
Payment?” for looking up the information, starting March 23.
Deadline Fast
Approaching to Deduct Haiti Donations on 2009
Returns
Feb. 24, 2010
Taxpayers
have until midnight on Sunday, Feb. 28, to make cash contributions
to charities providing earthquake relief in Haiti and deduct them
on their 2009 tax returns. Contributions made after that date and
before the end of 2010 can be deducted on 2010 returns.
IRS Updates Rules
on Adequate Disclosure
Jan. 28, 2010
The
IRS has updated its guidance on the rules governing when
disclosure of an item or position on a tax return constitutes
“adequate disclosure” for purposes of reducing an understatement
of income tax or avoiding certain tax return preparer penalties.
IRS Designates
Haiti Earthquake as "Qualified
Disaster"
Jan. 22, 1010
The
IRS designated the earthquake in Haiti as a “qualified disaster”
for purposes of IRC § 139. As a result, victims of the earthquake
who receive qualified disaster relief payments will be able to
exclude those payments from income. The notice also allows
employer-sponsored private foundations to assist their employees
in areas affected by the earthquake without jeopardizing their
tax-exempt status.
Senate Passes
Haiti Assistance Income Tax Relief
Jan. 21, 2010
The
Senate on Thursday passed by unanimous consent the Haiti
Assistance Income Tax Relief Act (S. 2936). The Senate bill was
identical to H.R. 4462, passed by the House on Wednesday. The
legislation now goes to President Barack Obama for his signature;
he is expected to sign it this week.
House Unanimously
Passes Haiti Donation Bill
Jan. 20, 2010
Under
the bill, taxpayers could deduct donations made in 2010 on their
2009 returns.
Tax Season Starts;
IRS Releases Homebuyer Credit Form
Jan. 17, 2010
The
IRS started accepting e-filed tax returns on Jan. 15, marking the
official start of tax season. The IRS’ popular Free File program
also started accepting returns on Friday. However, as usual, W-2
and 1099 forms are generally not due to taxpayers before Feb. 1,
so many taxpayers will not be prepared to file before then.
IRS Proposes New
Requirements for Return Preparers
Jan.
5, 2010
The IRS announced plans to require mandatory
registration of all paid, signing tax return preparers as well as
competency testing and CPE requirements for preparers other than
CPAs, attorneys or enrolled agents. The plan also calls for
extending Circular 230’s ethics rules to all return preparers.
Numerous
Tax Provisions Expired at End of 2009
Jan. 1, 2010
The ringing in of the new year at midnight
on Dec. 31 also signaled the expiration of several tax provisions.
The biggest was the estate and generation-skipping tax regime,
which is repealed for 2010.
Tax
Season Kicks Off
January 2010
New and extended stimulus provisions come
into play for the 2009 tax year filing season.
Plus: A printable card with a handy collection of
important numbers for individual returns to keep at your fingertips
for tax season.
The
Tax Adviser
:
An Overview of IRS Electronic Payment
Options
December 2009
With the e-filing of tax returns becoming
more and more prevalent, practitioners and their clients should also
take advantage of other electronic services that the IRS
has introduced in recent years.
The
Tax Adviser
:
Individual Taxation Report: Recent
Developments
October 2009
This article covers recent significant
developments affecting taxation of individuals, including cases,
IRS guidance, and legislative changes. The items are arranged in
Code section order.
BUSINESS TAX
IRS Issues
Regulations on 2009 Reduced Estimated Tax
Options
Feb. 28, 2010
The IRS released temporary and proposed regulations relating to reduced estimated income tax payments for qualified individuals with small business income in 2009. The regulations provide guidance on who is a qualified individual and what is a small business for these purposes.
IRS Issues 2009 Form 990; Explains Significant Changes
Feb. 14, 2010
The IRS has issued final 2009 versions of Forms 990 and 990-EZ, as well as their instructions. The IRS has also provided a detailed explanation of significant changes to the forms.
The Tax Adviser : Current Developments in Partners and Partnerships
February 2010
This article reviews and analyzes recent rulings and decisions involving partnerships. The discussion covers developments in partnership formation, debt and income allocations, distributions, passive activity losses, and basis adjustments.
IRS Plans to
Require Disclosure of Uncertain Tax
Positions
Jan. 26, 2010
The
IRS announced Tuesday that it is considering making changes to how
business taxpayers report uncertain tax positions. Specifically,
the IRS said it is developing a schedule that certain businesses
would be required to use to disclose uncertain tax positions on
their returns annually. The IRS plans to implement this
requirement for taxpayers with total assets in excess of $10
million.
The
Tax Adviser
:
Significant Recent Corporate Tax
Developments
January 2010
This article discusses selected
developments in U.S. federal income taxation of corporations and
consolidated groups during 2009. Not surprisingly, the arrival of
a new administration was accompanied by the introduction of
a variety of proposals for reform of the U.S. income tax system,
with a principal focus for corporate taxpayers on the taxation of
international activities.
IRS Issues 2010
Mileage Rates
Dec. 3, 2009
The IRS announced the standard mileage
rates for computing deductible costs of operating an automobile
that are paid or incurred on or after Jan. 1, 2010.
The
Tax Adviser
:
Current Developments in S Corporations (Part
1 and Part 2)
October 2009 & November 2009
This two-part article
discusses recent legislation, cases, rulings, regulations, and
other developments in the S corporation area. Part I covers
operational issues; part II covers S corporation eligibility,
elections, and termination issues.
ESTATES, TRUSTS & GIFTS
"Bundled" Fiduciary Fees Fully Deductible for 2009
April 2, 2010
The IRS in Notice 2010-32 extended to tax years beginning in 2009 its interim guidance on deductibility of a “bundled” investment advisory commission or fee paid to a trustee or executor on behalf of a nongrantor trust or estate.
IRS Issues Guidance on Gift Tax Consequences of Transfers in Trust
Feb. 2, 2010
The IRS on Tuesday clarified for taxpayers that despite the provisions of IRC § 2511(c), the gift tax continues to apply to certain transfers to a wholly owned grantor trust.
Feb. 1, 2010
The AICPA's Tom Ochsenschlager looks at the recent repeal of the estate tax and the new carryover basis rules and discusses the possibility that Congress will act to repeal the repeal.
Jan.
28, 2010
As of Jan. 1, the federal estate and
generation-skipping transfer taxes are no more. Unless Congress
reinstates them sooner, they will remain repealed until Jan. 1,
2011, when they are scheduled to be kick in once again. While
lawmakers have discussed bringing the estate tax back—and
potentially making it retroactive to the beginning of the year,
many questions remain. Against this backdrop, tax and estate
advisers have to consider what to recommend to their clients.
PRACTICE, PROCEDURE & COMPLIANCE
Practitioner's
Guide to Audit Reconsideration Requests
Feb. 11, 2010
In
certain circumstances, the IRS can abate an assessment of tax
and any applicable interest and/or penalties if the assessment
is excessive, erroneously or illegally made, or made after the
statute of limitation has expired. To take advantage of this,
practitioners should know how to request audit reconsideration
for their clients who meet the
criteria.
Obtaining
a Power of Attorney Through IRS
E-Services
Feb. 4, 2010
E-services
is a suite of Internet-based products that allows tax
professionals to conduct client business with the IRS 24 hours a
day, 7 days a week. Compared with mailing or faxing a Form 2848,
Power of Attorney and Declaration of
Representative, the e-services application is a much faster
way for tax professionals to register their authority and
represent a taxpayer before the IRS.
Video: Section
7216 Update
Jan. 19, 2010
The
AICPA's Tom Ochsenschlager and Ed Karl discuss recent rulings
and regulations on disclosure of taxpayer information and how
the new rules affect practitioners.
IRS Provides
Guidance on Return Preparer Liability Under IRC Section 7216
Dec. 30, 2009
The IRS issued two revenue rulings that
provide guidance to tax return preparers on situations in which
they will not be liable for civil or criminal penalties under IRC
§ 7216 for disclosing or using tax return information.
IRS Issues
Regulations on Disclosure of Tax Return Information
Dec. 30, 2009
The IRS issued temporary and proposed
regulations under IRC § 7216 that increase the circumstances in
which tax return preparers can disclose or use certain limited tax
return information.
EMPLOYEE BENEFITS
IRS
Updates Method Thresholds for Vehicle Fringe Benefits
Jan.
19, 2010
The
IRS has updated for 2010 the maximum allowable fair market value
of an employer-provided vehicle for which the cents-per-mile and
fleet-average rules may be used in determining the value of an
employee’s personal use of the vehicle.
The
Tax Adviser
:
Current Developments in Employee Benefits and Pensions (Part
1 and Part 2)
November
2009 & December 2009
This two-part article provides an
overview of current developments in employee benefits, including
executive compensation, health and welfare benefits, and qualified plans.
ADDITIONAL RESOURCES TO CHECK FOR ASSISTANCE
AICPA
Tax Season Resources
The AICPA's annual Tax Saving Tips resources are available in
the CPA Marketing
Toolkit. The resources include a PDF brochure,
speech
and companion PowerPoint
slides with notes for you to market your tax services and
provide tax solutions to current and potential clients. New this
year is a sample
media advisory and advertisements
to promote your services and expertise in your community.
Keep up to date through various additional resources for tax preparers:
- The monthly Tax Insider e-newsletter for individuals
- The monthly Corporate Taxation Insider e-newsletter, and
- AICPA Tax team Web site
