IRS practice & procedure

TOPICS / TAX

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.

March 9, 2023

Senate approves Danny Werfel as IRS commissioner

The Senate voted 54–42 on Thursday to approve Werfel, a former acting IRS commissioner who has served under both Democratic and Republican administrations.

March 9, 2023

Digital scanning of tax documents to expand, will add Form 1040 soon

The IRS announced that it will soon be able to scan paper Forms 1040 and 941 instead of inputting them by hand. The acting commissioner describes the expansion as “another milestone” in the agency’s transformation.

March 8, 2023

IRS clarifies required minimum distribution reporting

New guidance on required minimum distributions reporting provides relief for financial institutions that due to a change to the RMD start date rules made by the SECURE 2.0 Act, may have incorrectly provided RMD statements to IRA owners who turn 72 in 2023.

March 3, 2023

In-person IRS tax forums scheduled for first time since pandemic start

The three-day forums, last held in person in 2019, are designed specifically for CPAs and other tax professionals.

March 1, 2023

Lookback period extended for refunds related to pandemic postponements

In determining the beginning of the lookback period for refund claims for returns with due dates postponed by Notice 2021-21 or Notice 2020-23, the IRS will disregard the periods from April 15, 2020, to July 15, 2020, and from April 15, 2021, to May 17, 2021. This change will align the lookback periods with the postponed return filing due dates.

February 28, 2023

Supreme Court holds FBAR penalty is imposed per report, not per account

The Supreme Court held that the $10,000 maximum penalty for the nonwillful failure to file a compliant report applies on a per-report, not a per-account, basis.

February 27, 2023

District Court holds IRS owes tax preparers partial refund of PTIN fees

A district court held that the PTIN fees charged by the IRS from 2011 to 2017 were excessive and ordered the IRS to determine an appropriate partial refund of the fees.

February 24, 2023

Taxpayers in disaster areas of 3 states have until Oct. 16 to file returns

Taxpayers in most of California and parts of Alabama and Georgia have had their tax filing and payment deadlines further extended to Oct. 16. The postponement covers a wide variety of returns and taxes.

February 22, 2023

Final regs. expand company e-filing requirements

Final regulations require certain companies to e-file returns for tax years ending on or after Dec. 31, 2023, and lower the e-filing requirement threshold to 10 returns.

February 21, 2023

AICPA recommends 12 digital asset FAQs for IRS to post online

The AICPA has suggested questions and answers the IRS could post to assist taxpayers and practitioners in answering the question about digital assets that appears on Form 1040.

February 17, 2023

Taxpayers can now submit information online in response to 9 IRS notices

The change could help over 500,000 filers annually who receive these notices, including those who receive credits such as the child tax credit, the IRS said.

February 17, 2023

IRS misses Friday deadline to turn over $80 billion spending plan

Treasury Secretary Janet Yellen ordered the IRS to have the plan to her by Feb. 17. An IRS spokesman said the agency “expects to deliver the plan to the Secretary in coming weeks.”

February 15, 2023

AICPA makes 61 proposals to Congress for changes to the Internal Revenue Code

The 2023 AICPA Compendium of Tax Legislative Proposals — Simplification and Technical Proposals, which includes 61 proposals covering a wide variety of subjects, opens with a proposal to standardize definitions in the Internal Revenue Code so that terms have the same meaning throughout the Code.

February 13, 2023