On Monday, the IRS announced a program to provide certain issuers that purchase and hold their own tax-exempt bonds relief from debt extinguishment (Announcement 2011-19). In 2008, during the financial crisis, the IRS issued two notices providing relief from liquidity constraints in the tax-exempt bond market. The notices allowed state
Advertisement
TOPICS
Tax
IRS Lists Countries With Adverse Conditions for IRC § 911 Purposes in 2010
The IRS has waived the eligibility requirements under IRC § 911(d)(1) for certain taxpayers who did not meet the requirements because of adverse conditions in the foreign country in which they lived (Revenue Procedure 2011-20). The affected countries for 2010 are Haiti and Côte d’Ivoire (also known as Ivory Coast).
FinCEN Amends BSA Regs on FBAR Filings
The Financial Crimes Enforcement Network (FinCEN) on Thursday issued a final rule that amends the regulations under the Bank Secrecy Act (BSA) regarding Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), to clarify when an account is foreign and therefore reportable as a foreign financial account
IRS Announces Changes to Lien Process
The IRS has announced a set of new policies designed to help taxpayers pay their back taxes and avoid liens (IR-2011-20). The changes to the IRS’ lien filing practices include: Increasing the dollar threshold above which liens are generally filed. Making lien withdrawals easier after the taxes have been paid.
IRS Delays 990 Filing Deadline for Tax-Exempt Hospitals
The IRS on Wednesday announced that certain tax-exempt hospitals will be granted an automatic three-month extension to file their 2010 Forms 990, Return of Organization Exempt From Income Tax (Announcement 2011-20). The automatic extension applies to Forms 990 with a due date before Aug. 15, 2011; the IRS is also
IRS Provides Transitional Relief for Some Stock Basis Reporting Requirements
On Tuesday, the IRS provided transitional relief from the information reporting requirements that apply to issuers of stock regarding organizational actions that affect stock basis (Notice 2011-18). IRC § 6045B, enacted by the Energy Improvement and Extension Act of 2008, PL 110-343, instituted a number of new information reporting requirements
House Committee Sends 1099 Repeal to the Floor; Senate Passes Its Own Version of Repeal
The House Ways and Means Committee approved a bill Thursday that would repeal the expanded Form 1099 reporting requirements, voting 21–15 to send the measure to the full House of Representatives. Late on Thursday, the Senate passed the FAA Air Transportation Modernization and Safety Improvement Act (S 223) by a
IRS Starts Accepting Delayed Returns
The IRS on Tuesday announced that it has started accepting returns that it could not accept before because it was updating forms and reprogramming its systems (IR-2011-16). In December, the IRS informed taxpayers that because of the Dec. 17 enactment date of the Tax Relief, Unemployment Insurance Reauthorization, and Job
President Proposes 3-Year AMT Patch, Partial Relief on 1099s, Crackdown on Misclassification
President Barack Obama released his proposed budget for fiscal 2012 that would make several tax credits permanent, including the research and experimentation credit, and provide three more years of AMT relief, but would repeal or limit several other tax breaks. The budget would also set aside $240 million for initiatives
Overstatement of Basis Is Not Omission From Gross Income, Appeals Court Rules
For the second time in a week, a federal circuit court of appeals has handed the IRS a defeat on the issue of whether an overstatement of basis amounts to an omission from gross income for purposes of invoking the longer, six-year limitation period for assessing tax under IRC §
House Members Create Bipartisan CPA Caucus
Two members of the House of Representatives created the Bipartisan Congressional CPA Caucus with a goal of harnessing their unique professional skills to develop innovative policy approaches to issues that affect CPAs, including tax administration and compliance, and accounting and auditing standards. Reps. Brad Sherman, D-Calif., and Michael Conaway, R-Texas,
IRS Will Allow Costs of Breast Pumps as Deductible Medical Expenses
In a reversal of long-standing policy, the IRS announced it will treat expenses for breast pumps and supplies that assist in lactation as deductible medical expenses (Announcement 2011-14). The IRS also said that amounts that taxpayers are reimbursed for these expenses under a flexible spending arrangement, Archer medical savings account,
Another Circuit Says Overstatement of Basis Is Not an Omission From Gross Income
The ongoing controversy over whether a taxpayer’s overstatement of basis triggers a six-year statute of limitation period continues as the Fourth Circuit has held that the extended period does not apply (Home Concrete & Supply, LLC, No. 09-2353 (4th Cir. 2/7/11)). The taxpayers had artificially overstated the bases in their
IRS Announces Second Offshore Voluntary Disclosure Program
On Tuesday, the IRS announced that it is starting a new program designed to bring money held in foreign accounts back into the U.S. tax system and to help taxpayers with income from offshore accounts to comply with federal tax law. Under the program, taxpayers that disclose previously undisclosed foreign
IRS Guidance on Court-Ordered Restitution
In a piece of informal guidance, the IRS Office of Chief Counsel provided an outline of its understanding of the IRS’ new authority to assess and collect court-ordered restitution for failure to pay tax (CCA 201105037). The Firearms Excise Tax Improvement Act (PL 111-237), enacted in August 2010, amended IRC
Final Regs Issued on Treating Musical Works as Capital Assets
The IRS issued final regulations on Friday governing how to elect to treat the sale or exchange of a musical work or copyright in a musical work as a sale or exchange of a capital asset (TD 9514). The IRC § 1221(a)(3) definition of capital asset excludes certain property held
Foreign Housing Expense Limitations for 2011 Released
The IRS has provided the inflation-adjusted limitations on foreign housing expenses for 2011 (Notice 2011-8). Under IRC § 911(a), a qualified individual can elect to exclude from gross income his or her foreign earned income and housing costs. Section 911(c)(1) provides a formula for determining the excludible amount of the
IRS Revises Withholding Rules for Nonresident Alien Employees
On Wednesday, the IRS announced the 2011 procedures for withholding on wages of nonresident alien employees who work in the United States (Notice 2011-12). The new procedures apply to wages paid on or after Jan. 1, 2011. In 2010, special withholding procedures were instituted for nonresident aliens because they were
Individual Insurance Mandate Held Unconstitutional Again
A second federal district court has held that the individual insurance mandate in the health care reform legislation is unconstitutional (Florida v. Department of Health and Human Services, No. 3:10-cv-91-RV/EMT (N.D. Fla. 1/31/11)). And, in this case, the court has refused to sever the mandate from the rest of the
Burnt Offering Rejected
The Tax Court denied a deduction for a house donated to a fire department for burning in a training exercise, saying its value was decreased by restrictions on its disposition to less than the benefit to the owner from its demolition. Theodore Rolfs and his wife, Julia Gallagher, purchased lakefront
Features
SPONSORED REPORT
Get your clients ready for tax season
Help clients avoid surprises with year-end planning strategies for managing taxable income, maximizing deductions, and adjusting to OBBBA changes affecting individuals and businesses.
From The Tax Adviser
October 31, 2026
AI risks to the Sec. 7525 practitioner privilege
September 30, 2026
Navigating the QSBS rules in pass-through structures
September 30, 2026
Sec. 338(h)(10) elections in business acquisitions
August 31, 2026
