IRS practice & procedure

TOPICS / TAX

May 1, 2023

IRS returns to in-person public hearings; telephone still an option

With COVID-19 no longer considered a national emergency, the IRS will return to public hearings for proposed regulations published in the Federal Register beginning in May while keeping telephone access as an option.

May 1, 2023

Mortgage interest deduction denied

Employer-provided housing was not on the business’s premises, the Tax Court finds.

May 1, 2023

Tax Court denies medical exception for early pension distribution

The taxpayer’s diabetes did not prevent him from engaging in substantial gainful activity, the court holds.

May 1, 2023

Contractor’s housing accommodation is taxable

Employer-provided housing was not on the business’s premises, the Tax Court finds.

April 21, 2023

Werfel: IRS will audit individuals under $400K at 2018 rates

The new IRS commissioner tells the Senate Finance Committee the rate will be taken from the 2018 data because that’s the most recent year for which the IRS has final audit numbers.

April 13, 2023

IRS obsoletes 1958 revenue ruling on research and experimental costs

The ruling, which is being obsoleted as of July 31, allowed a taxpayer that used the expense method for research and experimental expenditures to deduct on an amended return research and experimental expenditures the taxpayer did not deduct in prior years.

April 13, 2023

AICPA encouraged by IRS $80 billion strategic operating plan

In a statement Wednesday, the AICPA said much of the IRS’s spending plan lines up with what the AICPA has requested but still recommends further improvements.

April 11, 2023

Proposed regs. identify microcaptive reportable transactions

The IRS has issued proposed regulations that identify certain microcaptive transactions as listed transactions and certain others as transactions of interest.

April 10, 2023

Safe-harbor language issued for amending conservation easement deeds

In response to a requirement in the SECURE 2.0 Act of 2022, the IRS issued a notice Monday that allows donors to amend conservation easement deeds to substitute the safe-harbor language for the corresponding language in the original deed.

April 10, 2023

Public can share ideas on IRS customer service this week

Six committees of the Taxpayer Advocacy Panel — including the one focused on toll-free phone lines such as the Practitioner Priority Service line — meet to hear public suggestions for customer service days after the IRS released its plan for an $80 billion influx of money.

April 7, 2023

IRS unveils $80 billion spending plan

The IRS released its long-awaited strategic plan for spending the $80 billion it was allocated by last year’s Inflation Reduction Act. Over the first three years, the plan focuses on operations support, enforcement, business systems modernization, and taxpayer services.

April 4, 2023

Dirty Dozen: IRS scam list includes spear-phishing warning to tax pros

On its annual list, the IRS included a warning to tax pros and businesses to be cautious about opening emails and clicking on links that could result in identity theft.

March 30, 2023

An educational lesson on UBIT

On remand, a district court again finds Mayo Clinic is entitled to an $11.5 million refund of unrelated business income tax, based on its status as an educational institution.

March 30, 2023

Emotional-distress settlement denied exclusion treatment

A university whistleblower’s damages did not address alleged physical injuries, the Tax Court concludes.

March 30, 2023

Bank deposits analysis upheld

The Tax Court rejects a taxpayer’s claim that the IRS’s reconstruction of his income included nontaxable proceeds from a real estate sale.

March 27, 2023

Dirty (Half) Dozen: Watch for these red flags when choosing a tax preparer

The IRS reached the halfway point of its annual “Dirty Dozen” list of tax scams, advising that taxpayers be careful when choosing a preparer to handle their returns.

March 21, 2023

NFTs as collectibles: IRS issues guidance and seeks comments

Pending further guidance that it intends to issue on the treatment of nonfungible tokens as collectibles, the IRS said that it will use a lookthrough analysis for determining if an NFT is a collectible.

March 17, 2023

Taxpayer services should get more of that $80 billion, advocate says

National Taxpayer Advocate Erin Collins wrote in her blog post Thursday that Congress should allocate more money from the Inflation Reduction Act’s $80 billion budget infusion over 10 years for the IRS to taxpayer services and business systems modernization and less to enforcement and operations.

March 13, 2023

ERC claims on returns prepared by others raise questions for tax pros

The IRS Office of Professional Responsibility issued a bulletin that reviews the Circular 230 professional responsibilities that apply to claims for the employee retention credit.

March 13, 2023

Questions about software tracking and reporting for basis of digital assets

Tax practitioners have many questions about how to track and report the basis of digital assets, and no clear guidance exists. Here are tips from the AICPA Virtual Currency and Digital Assets Tax Task Force.