With its scores of new and extended provisions, the American Taxpayer Relief Act of 2012 offers something for nearly all taxpayers and their preparers to assess and implement as they begin preparing 2012 returns and plan for the future. Less than two hours into 2013 and the “fiscal cliff” expiration
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Regulations issued on Treasury Inflation-Protected Securities issued at a premium
The IRS has issued final regulations on the tax treatment of Treasury Inflation-Protected Securities (TIPS) that have more than a de minimis amount of premium, and temporary and proposed regulations on debt instruments with bond premium carryforward in the holder’s final accrual period (T.D. 9609; REG-140437-12). The final regulations adopt
IRS issues withholding tables for American Taxpayer Relief Act
On Friday, the IRS issued newly revised percentage withholding tables to implement the rates that will be in effect this year now that the American Taxpayer Relief Act, H.R. 8, has been enacted (Notice 1036, Rev. Jan. 2013, IR-2013-1). The tax rates in the tables are 10%, 15%, 25%, 28%,
To fight identity theft, IRS proposes rules for truncating identifying numbers
On Thursday, the IRS issued proposed regulations (REG-148873-09) that permit filers of information returns to use truncated taxpayer identification numbers (TTINs) when issuing payee statements in the Form 1099, 1098, and 5498 series (with the exception of Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, because that form is
Proposed regs. issued on large employer health coverage shared responsibility provisions
The IRS has issued proposed regulations providing guidance on the large employer “shared responsibility” provisions in Sec. 4980H (REG-138006-12). Taxpayers can rely on the proposed regulations until the IRS issues final regulations or other applicable guidance. The IRS also posted FAQs on its website, explaining how the shared responsibility provisions
Tax and fiscal cliff resources
The Journal of Accountancy is dedicated to ensuring CPAs stay well informed about the tax issues. This page gathers together news stories and articles from AICPA magazines and newsletters discussing the many aspects of the fiscal cliff that loomed at the end of 2012. The fiscal cliff had many different
Congress passes fiscal cliff act
Pulling back from the “fiscal cliff” at the 13th hour, Congress on Tuesday preserved most of the George W. Bush-era tax cuts and extended many other lapsed tax provisions. Shortly before 2 a.m. Tuesday, the Senate passed a bill that had been heralded and, in some quarters, groused about throughout
FATCA: A new era of financial transparency
Since 2008, the U.S. government has been aggressively moving against U.S. taxpayers who have undeclared foreign accounts. Through a variety of mechanisms, the government has obtained information about U.S. account holders and their assets from jurisdictions previously thought nearly impenetrable. These recent developments portend the eventual erosion of traditional concepts of
Second Circuit strikes down part of Defense of Marriage Act
The Second Circuit recently affirmed a New York federal district court decision that allowed the surviving spouse of a same-sex couple to take an unlimited marital deduction when computing the deceased spouse’s estate tax liability. The Second Circuit agreed with the lower court that Section 3 of the Defense of
Improving the audit selection process
The Treasury Inspector General for Tax Administration (TIGTA) recently released two reports for its study of the IRS Small Business/Self-Employed (SB/SE) Division’s audits of partnerships and S corporations. The findings in both reports are similar: Although the SB/SE audits recommended substantial adjustments, roughly 33% of all the audits in fiscal
Practice safe e-filing
Since 2012, e-filing generally has been mandatory for tax preparers or firms that anticipate filing 11 or more federal individual or trust returns in a calendar year. However, e-filing presents a variety of dangers and unintended consequences not present with paper filing. Here are tips to make e-filing as safe
Covered opinion rules withdrawn
Finding that the rules it implemented in 2004 regarding covered opinions were not justified by the additional costs of practitioner compliance, on Sept. 14 the IRS proposed revoking them and substituting a single, basic new standard governing all written tax advice (REG-138367-06). Under current Circular 230, Regulations Governing Practice Before
TIGTA: IRS pays millions in unnecessary interest on NOL carrybacks
The Treasury Inspector General for Tax Administration (TIGTA) found that IRS delays in processing net operating loss (NOL) carrybacks result in the IRS’s paying millions of dollars in interest unnecessarily. According to TIGTA, the IRS pays the excess interest because it does not always process taxpayers’ amended prior returns with
Conservation easements are deductible despite reimbursement provision
The Tax Court upheld charitable donations of conservation easements in a bargain sale, despite a requirement that, in the event of a later disposal of the property and extinguishment of the easements, the donee organization use the proceeds to reimburse the government agencies that funded the purchase. The court determined
Subsidiaries’ advance agreements are equity instruments
The Tax Court ruled that PepsiCo’s Netherlands subsidiary’s “advance agreements” (AAs) with certain other PepsiCo subsidiaries, newly formed as part of an effort to retain its tax position, were properly characterized as equity for U.S. tax purposes. Prior to 1996, PepsiCo had a corporate structure that allowed separate Netherlands Antilles
Small businesses struggle to navigate provisions of the health care law
Small businesses have enough to worry about without having to wade through the intricacies of hundreds of pages of the health care legislation enacted in 2010: the Patient Protection and Affordable Care Act, P.L. 111-148, as amended by the Health Care and Education Reconciliation Act P.L. 111-152, referred to here
Tax season: Cued up and ready?
The tax organizer files are starting to come in, the return preparation software is updated, and the staff has cleared its calendar for the long days and nights ahead. That’s right, it’s tax preparation season, and for 2012 returns, CPAs have much to consider that’s new. They may also have
Whistleblower’s claim not entitled to Tax Court review
In a case of first impression, the Tax Court held that it could not order the IRS to reopen an individual’s whistleblower claim under Sec. 7623(b), and the court dismissed his petition. Sec. 7623(b) authorizes an award to a whistleblower if the IRS proceeds with any administrative or judicial action based
Avoiding allegations of improper tax advice
On the golf course, an older client mentions that he has pledged an endowment to his alma mater. Knowing the client does not need his IRA funds for retirement purposes, the CPA mentions that certain taxpayers can make distributions directly from their IRAs without the distribution being included in taxable
Nina Olson: Taxpayers’ voice at the IRS
Nina E. Olson is the IRS’s National Taxpayer Advocate. Since 2001, she has led the Taxpayer Advocate Service (TAS), a nationwide organization of approximately 2,000 taxpayer advocates who help U.S. individual and business taxpayers resolve problems and work with the IRS to correct systemic and procedural problems. In this capacity,
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Flip out with the latest Tech Q&A
The September Technology Q&A column shows how to create dynamic to-do lists with Excel's checkboxes and also how to set up multifactor authentication texts that don't rely on phones. Flip through both items and view a video walkthrough in our digital format.
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