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.
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TOPICS / TAX
IRS practice & procedure
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.
Alimony tax gap swells to $3.2 billion, TIGTA finds
The difference resulted in $248 million of tax underreporting.
TIGTA outlines IRS challenges for 2020
The memorandum lists 10 challenges in order of importance, ranging from data security to achieving operational efficiencies.
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.
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.
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.
Congress approves IRS reform legislation
The law revamps the appeals process, requests for innocent spouse claims, and private debt collection rules, among other revisions.
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.
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.
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.
Ninth Circuit holds common law mailbox rule inapplicable
IRS regulations permissibly established the exclusive means of proving timely filing, the appeals court holds.
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.
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.
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.
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.
Ninth Circuit upholds IRS cost-sharing regulation
The Ninth Circuit Court of Appeals reversed a Tax Court decision that had held that a cost-sharing regulation that required allocation of stock-based compensation was invalid.
Changes coming to tax transcript availability
To fight identity theft, starting June 28 the IRS will no longer fax transcripts to taxpayers, tax professionals, and other third parties. And in July it will stop providing an option for mailing transcripts to third parties.
Taxpayers did not properly notify IRS of address change, the Tax Court holds
Despite the taxpayers’ use of their new address on a power-of-attorney form and extension request, the IRS properly sent deficiency notices to their old address, and the taxpayers’ petition to the Tax Court was ruled untimely.
IRS issues draft of revised Form W-4 for 2020
The new draft form, which has been extensively redesigned, is intended to simplify the calculation of income tax withholding after the changes made by the law known as the Tax Cuts and Jobs Act.
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