Procedures for Puerto Rico residents to claim a 2021 child tax credit
The IRS provides two simplified filing methods for bona fide residents of Puerto Rico to claim the child tax credit.
Tax
Staffing shortages, backlog hampered IRS in 2022 filing season, TIGTA says
The Treasury Inspector General for Tax Administration issues a preliminary assessment of the IRS’s performance in the recently concluded period for income tax filings.
No step-up in basis for private foundation’s assets
A PMTA disagrees with a prior letter ruling.
IRS levy trumps decedent’s children’s claim to money held in usufruct
State law treats heirs as unsecured creditors.
Eleventh Circuit: Judicial extinguishment proceeds formula invalid
The IRS’s interpretation of a conservation easement rule is struck down.
Adopting a child: Tax planning considerations
Parents pursuing an adoption can use a CPA’s advice.
Line items
IRS to fast-track 10,000 hirings to address backlog ... National taxpayer advocate to CPAs: Tell us where the challenges are ... Proposed regulations update RMDs for SECURE Act changes ... IRS offers alternative to facial recognition
Inflation boosts HSA amounts for 2023
Health savings account maximum contributions, along with minimum deductibles and maximum out-of-pocket expenses of accompanying high-deductible health plans, will be higher next year.
Schedules K-2 and K-3 e-file capability postponed for S corporations
The IRS delays e-filing capability for schedules reporting S shareholders’ items of international tax relevance, earlier forecast for mid-June, to July 24.
Invitation issued for IRS Priority Guidance Plan recommendations
The IRS opened its annual to-do list for drafting regulations and other formal guidance to public suggestions of priority tax issues.
IRS proposes to amend estate and gift tax basic exclusion regs.
Exceptions to the special rule allowing the temporarily higher basic exclusion amount to apply to gifts credited against estate tax.
Supreme Court holds Tax Court not bound by petition filing deadline
The 30-day limit under Sec. 6330(d) for petitioning the Tax Court to review an IRS determination is nonjurisdictional and can be equitably tolled, the Court holds in the case of a taxpayer whose petition was one day late.
IRS funding, technology assessed in House hearing
IRS Commissioner Charles Rettig and National Taxpayer Advocate Erin Collins testify to the House Oversight and Reform Committee.
Treasury equity action plan reports progress
The tax implications of the Biden administration’s policy of advancing racial equity and support for underserved communities across the government are outlined.
Superfund taxpayers granted failure-to-deposit penalty relief
The IRS also assures payers of the reinstituted excise taxes that they will not lose a deposit safe harbor in early 2023.
SALT cap challenge is denied Supreme Court review
The $10,000 limitation on deducting state and local taxes stands after the Supreme Court refused to review a long-running lawsuit by New York and three other states.
IRS’s FATCA enforcement fell short, TIGTA says
Initial plans for the Foreign Account Tax Compliance Act’s regime of reporting US taxpayers’ foreign bank accounts and other financial assets largely have stalled, the Treasury Inspector General for Tax Administration reports.
More Schedule K-2 and K-3 FAQs posted
In eight new FAQs on its website, the IRS covers some special issues, including several that it says will be added to the forms’ instructions.
Letters from IRS to warn taxpayers about possible QOF actions needed
The IRS is sending letters to taxpayers who may need to take additional actions related to qualified opportunity funds .
Acute IRS challenges had chronic origins, GAO reports
The US Government Accountability Office draws lessons for the IRS in handling taxpayer return errors, processing those returns more timely and serving taxpayers’ needs.
