Refundable state income tax credits designed to promote economic development are taxable income to the recipients.
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Exercising due diligence
By providing documented due diligence, practitioners can explain why they took the position and show they used reasonable care when determining the position was appropriate.
IRS asks for comments on accounting method changes for proposed revenue recognition standards
The IRS asked for comments on how taxpayers’ accounting methods should be affected by the new financial accounting revenue recognition standards that have been issued by FASB and the IASB.
Thieves access IRS Get Transcript app, 100,000 accounts compromised
The criminals attempted to hack as many as 200,000 accounts. The IRS is notifying affected taxpayers and has launched a criminal investigation.
Tax reform, lower rates among top legislative goals, Ryan tells AICPA
In a speech to the AICPA’s spring Council meeting, Rep. Paul Ryan, chair of the House Ways and Means Committee, laid out his goals for tax reform and lower tax rates. He also called for the United States to adopt a territorial tax system.
Supreme Court invalidates Maryland’s personal income tax structure
The U.S. Supreme Court held that Maryland’s personal income tax, which does not permit a credit against Maryland county income tax for taxes paid to other states, violates the dormant Commerce Clause.
Basis rules for estates of 2010 decedents proposed
The IRS issued proposed regulations to amend various regulation sections to take into account special rules that affect the basis of assets acquired from a decedent who died in 2010 and for which an executor made a Sec. 1022 election.
Regs. on notional principal contracts change treatment of nonperiodic payments
The IRS issued temporary and proposed regulations amending the treatment of nonperiodic payments made or received under certain notional principal contracts (NPCs).
List of designated private delivery services is updated, postmark rules revised
For the first time since 2004, the IRS has updated the list of private delivery services (PDSs) that qualify under the mailbox rule of Sec. 7502.
Rulings illustrate transactions that qualify as D reorganizations
The IRS issued revenue rulings on whether two transactions, one involving domestic entities and another involving both domestic and foreign entities, qualified as Section 351 exchanges followed by D reorganizations.
2016 inflation adjustments for HSAs released
The inflation-adjusted amounts include the annual contribution limitation, the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans.
“Be on the lookout” lists gone from IRS reviews of Sec. 501(c)(4) applications
Two years after finding the IRS used inappropriate criteria when reviewing applications for tax-exempt status under Sec. 501(c)(4) and delayed the processing of some applications, the TIGTA issued a follow-up report to check on the IRS’s progress in eliminating the controversial practices.
IRS intends to amend rules so refunds match foreign withholding payments
The IRS has proposed to amend its regulations to limit refunds paid to beneficial owners of withheld payments to amounts actually deposited by withholding agents.
CHIP buy-in programs may qualify as minimum essential coverage
The existence of Children’s Health Insurance buy-in programs that qualify as minimum essential coverage will not make taxpayers ineligible for the premium tax credit except in periods when they are actually enrolled in the program.
Proposed PFIC rules would define “active conduct” of an insurance business
Proposed rules would define when investment income earned by a foreign insurance company would not be considered passive income in the determination of whether the company is a passive foreign investment company (PFIC).
Millions of taxpayer phone calls went unanswered by IRS this tax season
The interim report for the 2015 filing season revealed that the average time a taxpayer calling the IRS for assistance had to wait was 24.6 minutes, up from 11.7 minutes last year, and that very few taxpayer calls were actually answered.
IRS grants penalty relief to taxpayers who received incorrect health care forms
The incorrect forms generally included the monthly premium amount of the second-lowest-cost Silver plan for 2015 instead of for 2014.
Tax practice responsibilities involved in Schedule UTP
The need to file Schedule UTP, Uncertain Tax Position Statement, may have taken many corporate taxpayers by surprise in 2014, since the asset threshold for compliance was lowered from $50 million to $10 million.
Change is coming: Accounting method changes under the tangible property regulations
This article discusses the details of some of the accounting method changes businesses may need to make to comply with the tangible property regulations, popularly known as the “repair regulations.”
Proposed rules would govern Sec. 41 credit for software
The IRS offers a test and safe harbor for qualifying dual-function internal-use software.
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