Tax news and information - Journal of Accountancy

TOPICS

March 1, 2025

Frozen digital asset rewards constitute gross income

Digital asset rewards from staking and other activities constitute income in the year of receipt, irrespective of whether the account is later frozen, the IRS Chief Counsel’s office determined.

March 1, 2025

FBAR penalties are not taxes imposed by the Code

Because they are imposed under Title 31, taxpayers’ foreign bank account reporting failure penalties were not subject to the Code’s procedural requirements, the Tax Court held.

February 28, 2025

FinCEN extends BOI reporting deadline, halts enforcement

The Financial Crimes Enforcement Network said late Thursday that it will extend the current reporting deadline beyond March 21 and will develop new regulations to reduce “regulatory burden.”

February 27, 2025

Phish, smish, and spear phish: IRS releases 2025’s Dirty Dozen

The annual list, which began in 2002, lists 12 ways scammers try to gain confidential information from tax professionals or trick taxpayers.

February 26, 2025

Acting IRS commissioner steps down

The agency’s COO will take over for Douglas O’Donnell, who has worked for the IRS since 1986.

February 20, 2025

Thousands of workers in IRS small business division to lose jobs

An email sent to managers on Wednesday said that more than 3,500 probationary workers in the Small Business/Self-Employed division are expected to be notified Thursday that they are no longer employed with the IRS.

February 19, 2025

March 21 BOI reporting deadline set; further delay possible

A FinCEN alert said it would provide an update before “any further modification” of the reporting deadline, “recognizing that reporting companies may need additional time to comply with their BOI reporting obligations once this update is provided.”

February 16, 2025

AICPA urges IRS to meet needs of taxpayers, preparers during filing season

“Americans deserve a fully functioning agency that can be respected by taxpayers and their preparers,” a statement by AICPA CEO Mark Koziel said Sunday as IRS officials plan for cuts in federal workforce.

February 12, 2025

BOI reporting deadline extension passes US House

The bill, which provides a deadline of Jan. 1, 2026, for an estimated 32 million small businesses to file beneficial ownership information reports, comes as the BOI requirements are mired in court cases.

February 12, 2025

Lower auto depreciation limits issued for first time in at least 3 years

The IRS issued the 2025 depreciation limitations for passenger vehicles, including those for which bonus depreciation is applied.

February 7, 2025

BOI penalties increase while reporting rules remain on hold

The Financial Crimes Enforcement Network list includes inflation-adjusted amounts for the civil monetary penalties for violating beneficial ownership information reporting rules.

February 7, 2025

FinCEN hints at BOI reporting changes in court filing

If an injunction is lifted, FinCEN will extend BOI filing deadlines for 30 days and reassess the types of companies required to file beneficial ownership information reports, the government said in its filing in a Texas case.

February 5, 2025

IRS delays resignation offer for critical tax season workers

IRS employees received an email Wednesday advising them that workers in “critical filing season positions” must work until mid-May.

February 1, 2025

Frivolous-tax-return penalty sustained

The Tax Court found all requirements of Sec. 6702(a) were met regarding the taxpayer’s zero-wage and -income return.

February 1, 2025

Line items

Final regs. modernize process for sale of taxpayers’ property … Inflation adjustments to retirement account limits issued for 2024 … IRS to end automatic penalties for late filing of foreign gift, bequest forms … Fraudsters get $47 million from practitioner priority service line scheme

February 1, 2025

FBAR penalties are not extinguished upon taxpayer’s death

FBAR penalties accrue on the date the FBAR form is due, not the date the penalty is assessed, a district court held.

January 30, 2025

‘A big tax year’: What practitioners need to know now

An AICPA tax leader updates listeners on the status of beneficial ownership information reporting, explains advocacy focus areas related to proposed Circular 230 regulations, and discusses the issues that would need to be negotiated to produce an extension of the Tax Cuts and Jobs Act. Listen to the podcast episode or read the Q&A.

January 30, 2025

AICPA supports Senate discussion draft to help taxpayers, preparers

An AICPA news release mentioned 13 provisions in the bipartisan draft that have its strong support, including ones dealing with tax filing by victims of disasters, electronic notices, and callback technology.

January 24, 2025

Executive order’s hiring freeze causes IRS to cancel some job offers

The IRS said President Donald Trump’s executive order calling for a hiring freeze caused it to rescind all jobs offered with a start date after Feb. 8.

January 24, 2025

FinCEN says BOI reporting remains on hold

The Financial Crimes Enforcement Network (FinCEN) said Friday that while the U.S. Supreme Court did stay one nationwide injunction, one issued by a different judge in a separate case remains in effect.

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.