Tax news and information - Journal of Accountancy

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August 5, 2024

Tax practitioner complaint leads to review of advocate phone service

A tax practitioner complained about a six-week wait for a response to help a client with a financial hardship who was owed a refund, leading to the unflattering review by the Treasury Inspector General for Tax Administration.

August 1, 2024

Melancon: Supreme Court decisions are ‘big deal’ for tax pros

Barry Melancon, CPA, CGMA, AICPA & CIMA’s CEO, said the decisions will create uncertainty for a profession that craves certainty.

August 1, 2024

Third Circuit rules taxpayer’s claim is not moot

The IRS’s setoffs of tax prepayments were invalid, the appellate court holds, remanding the case to the Tax Court.

August 1, 2024

Line items

HSA inflation-adjusted maximum contribution amounts for 2025 announced … Foreign trust transactions and large gifts addressed in proposed regs. … Final regs. issued for new, previously owned clean vehicle credits … Practitioner service improvements part of IRS strategic operating plan … Automatic accounting method changes list updated by IRS

August 1, 2024

D.C. Circuit reverses Tax Court on assessment of foreign entity ownership reporting penalties

The penalties under Sec. 6038(b) are administratively assessable by the IRS despite not being so designated, the appellate court holds.

August 1, 2024

What not-for-profits need to know about UBIT

CPAs can help not-for-profits understand what revenue is subject to the unrelated business income tax (UBIT) and navigate the rules surrounding the tax.

August 1, 2024

IRS funding and a potential rise in malpractice claims

The Service’s beefed-up audit capabilities provided under the Inflation Reduction Act focus on large entities and high-income taxpayers, but others may also face more audit risk, also exposing CPA tax preparers to malpractice claims.

July 29, 2024

5 new warning signs of a bad claim for pandemic-era ERC

The IRS said the five signs are the result of what IRS compliance teams found while analyzing and processing claims for the employee retention credit (ERC). The Service plans to briefly reopen its voluntary disclosure program.

July 25, 2024

Funding spurs IRS improvements, but challenges remain, commissioner says

IRS provides fifth quarterly update on transformation efforts, with Commissioner Danny Werfel saying the agency is making “substantial progress.”

July 22, 2024

FinCEN estimates millions of hours will be spent seeking BOI access

Almost 16,000 entities will spend over 8.7 million hours seeking access to beneficial ownership information in the first year, FinCEN estimated in a new notice.

July 18, 2024

Final and proposed regs. issued on retirement plan RMDs

The final regulations reflect changes to the required minimum distribution rules made by the SECURE Act and SECURE 2.0 and generally follow proposed regulations issued in 2022.

July 11, 2024

How tax practitioners viewed filing season, plus ERC and BOI updates

An AICPA leader analyzes recent news related to employee retention credit claims and beneficial ownership information reporting requirements. She also explains why member sentiment about IRS performance during tax filing season is not in alignment with IRS data. Read the Q&A or listen to the podcast episode.

July 11, 2024

IRS collects $1 billion from high-income people who owed back taxes

The IRS is collecting on tax liabilities that were not “even in dispute,” Commissioner Danny Werfel said, but the IRS did not previously have the resources to pursue payment.

July 3, 2024

Proposed regs. address interest recapture on excess COVID-19 credits

The proposed regulations apply to overpayments of interest on erroneous refunds of COVID-19 credits paid on or after July 2.

July 2, 2024

Tax pros: IRS improving, but getting the right answer takes too long

A survey by the AICPA shows that almost two-thirds of tax professionals say it takes over 90 days to get a substantive response from the IRS to correspondence.

July 2, 2024

Analyzing Moore: The ruling that upheld the Sec. 965 transition tax

Tony Nitti, CPA, reviews the Supreme Court opinion in Moore and details the potential repercussions. Listen to the episode or read the Q&A.

July 2, 2024

Final regs. issued for 1% excise tax on corporate stock repurchases

The final regulations provide guidance regarding the reporting and payment of the excise tax on repurchases of corporate stock made after Dec. 31, 2022.

July 1, 2024

IRS issues final regs. on reporting requirements for digital assets

The final regulations require custodial brokers to report transactions on Form 1099-DA, which the IRS will release soon. A different set of final regulations with rules for decentralized, or noncustodial, brokers will be issued later.

July 1, 2024

Second Circuit lacks jurisdiction in small tax case

Sec. 7463(b) forecloses a review of the Tax Court’s dismissal, the appellate court holds.

July 1, 2024

Line items

Final regs. issued for clean energy credit transfers … Draft of Form 1099-DA for reporting digital asset transactions released … IRS has mixed results from ‘ghost employer’ enforcement efforts … IRS grants limited waiver for underpayment of estimated corporate AMT … Proposed regs. issued for 1% excise tax on corporate stock repurchases … Auto depreciation limitations increase