Tax news and information - Journal of Accountancy

TOPICS

October 1, 2016

No FBARs needed for player’s foreign online poker accounts

The websites had no financial purpose beyond gambling and were not financial agencies within the scope of the reporting requirement, the Ninth Circuit holds.

October 1, 2016

Deduction allowed for unredeemed ‘fuelperks!’

The Third Circuit reverses the Tax Court on accrual-basis retailer’s customer reward program.

October 1, 2016

Damage from collapsed retaining wall is not deductible to co-op stockholder

The collapse was caused by progressive deterioration, not an identifiable event of a sudden, unexpected, or unusual nature, the Tax Court holds.

October 1, 2016

Proposed rules issued on higher education credits and deduction

The regulations conform with recent law changes on qualified tuition and related expenses for schools and taxpayers.

October 1, 2016

IRS implements new Sec. 501(c)(4) notice requirement

Form 8976 notifying of intent to operate must be filed within 60 days of an organization’s formation.

October 1, 2016

CPAs lukewarm to IRS hotline

Despite shorter average wait times this year, using the Practitioner Priority Service can still be an ordeal, surveys suggest.

October 1, 2016

Bookkeeper/office manager’s innocent spouse claim is denied

The taxpayer’s involvement in her husband’s company gave her knowledge or reason to know of tax underpayments, the Tax Court holds.

October 1, 2016

Line items

Sec. 83(b) election statement is no longer required with return … IRS acquiesces to full mortgage interest deduction per individual co-owner

October 1, 2016

Tax issues for professional gamblers

Professional status allows deduction of ordinary and necessary business expenses.

September 28, 2016

Guidance allows QTIP election where executor elects portability

The IRS removed a prohibition on making a qualified terminable interest property (QTIP) election when the election would have been null and void because the estate had a zero estate tax liability.

September 27, 2016

IRS issues 2016–2017 special per-diem rates for travel

The IRS issued its annual updates of per-diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home on or after Oct. 1.

September 26, 2016

Private collection agencies to start collecting tax debts in the spring

Under legislation enacted last year, the IRS is required to use private debt collection agencies to collect outstanding inactive tax liabilities.

September 23, 2016

New IRS e-Services authentication process requires re-registration

The IRS announced that beginning in late October all e-services users will be subject to a strengthened identity protection process, which, for existing users, requires re-registering.

September 22, 2016

Tax scammers send fake CP2000s, IRS warns

The IRS issued an alert to taxpayers not to respond to the latest tax fraud scheme, an emailed CP2000 notice claiming to be related to an Affordable Care Act tax underpayment.

September 15, 2016

IRS restricts foreign tax credit splitter arrangements

The IRS issued guidance prohibiting corporations from taking foreign tax credits for taxes without repatriating the earnings to the United States.

September 9, 2016

Defined benefit plan participants can receive lump sum and annuity under new rules

The IRS issued new rules giving retirement plan participants greater flexibility in choosing how to receive their pension benefits.

September 2, 2016

New cyberattacks threaten tax professionals

A new wave of cyberattacks could allow criminals to take control of tax practitioners’ computers and file fraudulent returns.

September 1, 2016

Final regulations amend definitions of marriage

The IRS finalized proposed rules issued last October amending the definitions of marriage and husband and wife after the Supreme Court’s decision in Obergefell v. Hodges, which legalized same-sex marriages.

September 1, 2016