IRS practice & procedure

TOPICS / TAX

November 26, 2019

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 using the per-diem rates.

November 14, 2019

IRS commissioner seeks to enhance taxpayer contacts, target enforcement

Speaking to the AICPA National Tax Conference in Washington, IRS Commissioner Charles Rettig discussed possible Internal Revenue Service restructuring, more-targeted enforcement efforts and IRS use of data analytics.

November 6, 2019

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.

November 1, 2019

Preparer’s forgetting to hit ‘send’ doesn’t excuse clients’ late-filing penalties

Taxpayers’ reliance on a preparer to e-file their extension request is not reasonable cause, a district court holds.

November 1, 2019

Responsible person rules in the wake of Wayfair

As states impose sales tax collection obligations on more companies, individual taxpayers face a greater risk of personal liability if their organization fails to comply.

November 1, 2019

Taxpayers may revoke or make late bonus depreciation elections

Late elections or revocations made during the time prescribed in Rev. Proc. 2019-13 will be treated as automatic changes in method of accounting with a Sec. 481(a) adjustment.

November 1, 2019

Alimony tax gap swells to $3.2 billion, TIGTA finds

The difference resulted in $248 million of tax underreporting.

October 18, 2019

TIGTA outlines IRS challenges for 2020

The memorandum lists 10 challenges in order of importance, ranging from data security to achieving operational efficiencies.

October 1, 2019

Improving IRS practitioner services

The Taxpayer First Act embodies several principles for improved IRS customer service that have been central to AICPA advocacy efforts in recent years.

October 1, 2019

Final rules permit truncated TINs on W-2s

If an employer elects, forms issued to employees starting in 2021 will show only the final four numerals of their SSN.

September 13, 2019

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.

September 1, 2019

Congress approves IRS reform legislation

The law revamps the appeals process, requests for innocent spouse claims, and private debt collection rules, among other revisions.

August 15, 2019

Underpayment penalty relief now automatic for eligible filers

Some taxpayers who paid 2018 underpayment penalties will receive refund checks because the penalties will be automatically waived for those who qualify, the IRS announced.

August 13, 2019

Alimony tax gap swells to $3.2 billion, TIGTA finds

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.

August 6, 2019

IRS changes 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.

August 1, 2019

Ninth Circuit holds common law mailbox rule inapplicable

IRS regulations permissibly established the exclusive means of proving timely filing, the appeals court holds.

July 31, 2019

Taxpayers may revoke or make late bonus depreciation elections

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.

July 29, 2019

IRS alerts virtual currency owners of nonfiling consequences

The IRS has begun sending what it calls “educational letters” to taxpayers it has identified as not reporting virtual currency transactions or reporting them incorrectly.

July 2, 2019

Final rules permit truncated TINs on W-2s

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.

July 2, 2019

Congress approves IRS reform bill, drops Free File language

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.

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