Tax news and information - Journal of Accountancy

TOPICS

June 15, 2015

IRS issues final portability rules for estate tax exemptions

The IRS issued final regulations on the portability of deceased spouses’ unused estate tax exemption amounts, which allows surviving spouses to use unused amounts of exemption from the estate tax in addition to their own exemptions.

June 12, 2015

Tax industry and IRS team up to fight identity theft refund fraud

the IRS announced that it agreed to partner with a number of tax preparation firms, state tax administrators, and other interested parties to fight identity theft refund fraud.

June 11, 2015

IRS: Corporations cannot circumvent gain on appreciated property using partnerships

The IRS issued temporary regulations designed to prevent corporations from avoiding gain on the distribution of appreciated property through the use of partnerships.

June 3, 2015

Bright-line test determines substantial business activities under inversion rules

The bright-line test introduced in 2012 amended the existing rules that applied a facts-and-circumstances test.

June 2, 2015

Expanded IRS online services put taxpayer information at risk, Senate committee told

IRS Commissioner John Koskinen revealed more details about the theft of 100,000 taxpayers’ data through the Get Transcript system.

June 1, 2015

New accounting method change procedures give more time to file Form 3115

The IRS updated its recently amended procedures for requesting approval for accounting method changes.

June 1, 2015

Retail buildings placed in service before being open for business

Building materials and supplies stores were ready and available to perform their assigned function.

June 1, 2015

No Sec. 199 deduction for these activities

The IRS Large Business & International (LB&I) Division issued guidance to its employees listing activities performed “at the retail level” that it said do not produce property that is “manufactured, produced, grown, or extracted,” as defined by Regs. Sec. 1.199-3(e).

June 1, 2015

Helping S corporations avoid unreasonable compensation audits

The IRS aggressively audits S corporations to make sure they do not disguise compensation as distributions to shareholders. Here’s what tax preparers need to know to avoid red flags in S corporation returns.

June 1, 2015

Final regulations amend broker basis reporting requirements

Basis calculation elections, OID on tax-exempt obligations, and Sec. 1256 option transfers to other brokers are among areas addressed.

June 1, 2015

Tax engagement letters

Use of this important practice tool can minimize professional liability risk, reduce confusion, improve collections, and ensure clients have a good understanding of the practitioner’s role.

June 1, 2015

Taxes and the rescission doctrine

This doctrine allows taxpayers to “unwind” a tax transaction.

June 1, 2015

U.S. abode binds Russian-employed taxpayer

A taxpayer’s strong ties to the United States led to denial of the foreign earned income exclusion despite his spending half his time living and working overseas.

June 1, 2015

Refundable state business tax credits are income

Refundable state income tax credits designed to promote economic development are taxable income to the recipients.

June 1, 2015

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.

May 29, 2015

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.

May 26, 2015

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.

May 19, 2015

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.

May 18, 2015

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.

May 8, 2015

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.

FROM THIS MONTH'S ISSUE

4 ways solo practitioners can stand out

Five years ago, a grieving Angel Zhen started his own CPA firm with no clients and no revenue. Today, he has 300 clients, $600,000 in revenue and 12 weeks of annual vacation. In this JofA article, he shares how he set up his firm and how you could do the same.