Submissions of IRS identity theft affidavits and related correspondence are down by nearly half.
Tax
Compensation is held reasonable and a management fee deduction allowed
The Tax Court regards the hypothetical-investor test as supporting the taxpayer’s expert.
Electing the benefits of partial dispositions
A taxpayer could lose the benefits of a partial-disposition election if it fails to perform the required compliance.
Line items
Tax Court allows D.C. snow day extension for petition filing … Wellness rewards and premiums not excludable from employees’ income … IRS notes general principles of crowdfunding income
FAQs explain the wrongful incarceration exclusion
A new PATH Act provision excludes certain damages, awards, and restitution from gross income; the normal refund limitation period is waived through Dec. 19.
Risk management: Worth its SALT
These tips will help practitioners manage the professional liability risks stemming from state and local tax issues.
IRS fails to notify victims and Social Security Administration of identity theft cases
A report from the TIGTA found that the IRS had not notified victims or the Social Security Administration of many cases it detected of employment-related identity theft.
New procedures for amending returns to claim PATH Act depreciation changes
To help taxpayers take advantage of retroactive changes enacted late last year affecting Sec. 179 property and bonus depreciation, the IRS issued rules for filing returns to take advantage of these deductions.
Due-diligence hazards for tax practitioners: The list keeps growing
From rental property expenses to worker classification to offers in compromise, the list of areas where tax practitioners must exercise due diligence keeps growing.
IRS allows self-certification for late rollovers of retirement plan funds
The IRS issued a procedure permitting taxpayers, in certain circumstances, to give an IRA trustee or retirement plan administrator a certification statement to treat a rollover as timely even if the taxpayer failed to complete the rollover within 60 days after a distribution.
New user fees proposed for IRS installment agreements
The IRS is proposing to charge a variety of fees, based on whether the taxpayer uses the online application process and/or pays by direct debit.
IRS issues guidance on PATH Act ITIN renewals
Individuals whose individual taxpayer identification numbers (ITINs) will expire this year under new Code provisions may renew them starting in October.
IRS issues temporary regulations on early elections of new partnership audit procedures
The IRS issued rules regarding the time, manner, and form for partnerships to make the election to apply the recently enacted unified partnership audit rules for certain years before Jan. 1, 2018.
Second Circuit holds taxpayer not subject to IRS summons
The court held that the taxpayer was protected by the Fifth Amendment privilege against self-incrimination.
Proposed regs. govern reporting and claiming qualified tuition and related expenses
The IRS is proposing to amend the rules governing eligibility to claim a deduction or credit for eligible education expenses to conform them to recent legislative changes.
Line items
TIGTA: Improper hobby losses often overlooked … Treasury cracks IRS impersonation phone scams … Automatic method changes updated
Final regulations ease allocations of rollover distributions from designated Roth accounts
The separate distribution rule no longer applies.
CPAs contend with tax ID theft
A majority of CPAs surveyed say this scourge affects their practices and is often difficult to resolve.
2016 tax software survey
Results show 4 companies control more than 90% of CPA tax preparer market. Find out how more than 3,800 CPAs rated the tax preparation software they used in 2016.
Innocent spouse relief from penalties and interest granted
Although threshold conditions were not met, the Tax Court noted the taxpayer’s ignorance of his late wife’s failure to mail their completed return.
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