Tax news and information - Journal of Accountancy

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July 14, 2023

How the IRS can avoid tax deadline confusion in disaster areas

The national taxpayer advocate recommended changes that range from one simple one the IRS can handle on its own to congressional action.

July 13, 2023

S corps. and Rev. Rul. 2008-18 F reorganizations

Tony Nitti, CPA, reviews and provides applicability examples of Rev. Rul. 2008-18 in this podcast episode with transcript.

July 12, 2023

Prop. regs. clarify tax treatment of certain health insurance payments

New proposed regulations clarify that accident or health insurance payments are not excludable from an employee’s income where the payments are made without regard to amount of medical expenses incurred by the employee under Sec. 213(d) and the premiums or contributions for coverage are paid on a pre-tax basis.

July 5, 2023

Study: Deterrence a major factor in bringing in more money from IRS audits

The paper by researchers at Harvard University, the University of Sydney, and Treasury finds that an additional $1 spent on marginal audits of top earners can get a return of $12 in revenue.

July 1, 2023

Estate’s claimed deductions recharacterized as gifts or bequests

Payments purportedly for care and companionship were not evidenced as bona fide consideration or compensation as claims against the estate, the Tax Court holds.

July 1, 2023

Taxpayer’s blog posts held admissible in innocent-spouse case

In a case of first impression, the Tax Court considered the evidence ‘newly discovered’ and ‘previously unavailable.’

July 1, 2023

Line items

AICPA supports extending mailbox rule to electronic filing and payments … IRS backlog lessens; agency plans to resume collection notices … Proposed regs. provide rules for repatriation of intangible property … IRS returns to in-person public hearings; telephone still an option … Werfel: IRS will audit individuals under $400K at 2018 rates

July 1, 2023

Mitigating risk of large FBAR and international tax claims

Claims relating to U.S. filing obligations for foreign activity, including the FBAR, are getting increasingly more severe.

July 1, 2023

Bad debt deduction denied

An LLC’s cash advances to a corporation in which the LLC’s owners held shares represented equity, not bona fide debt, the Tax Court held.

June 30, 2023

Stock repurchase excise tax reporting and payment delayed by IRS

The IRS says covered corporations will not have to report or pay the new 1% stock repurchase excise tax until it issues forthcoming regulations.

June 29, 2023

Research finds algorithms, unscrupulous preparers behind audit bias

Subsequent research has replicated the racial gap in audit rates found in a study led by Stanford University and pointed to both unscrupulous tax preparers who submit EITC claims and algorithmic bias in the IRS’s audit selection process as causes.

June 23, 2023

COVID-19 coverage without a deductible ends next year

A high-deductible health plan will no longer be permitted to provide coverage without a deductible for testing for and treatment of COVID-19 after Dec. 31, 2024.

June 22, 2023

Taxpayer advocate: 2023 tax season better at IRS; IT upgrades imperative

In her annual midyear report to Congress, National Taxpayer Advocate Erin Collins says the difference between the 2022 and 2023 tax seasons was “like night and day.”

June 16, 2023

IRS updates list of automatic accounting method changes

The IRS on Thursday provided a comprehensive, updated list of changes in tax accounting methods to which the automatic change procedures in Rev. Proc. 2015-13 apply. The list includes 29 changes that the Service describes as significant.

June 14, 2023

IRS addresses whether college NIL collectives further an exempt purpose

A memo from the IRS Office of Chief Counsel advises that an organization that develops paid NIL opportunities for student-athletes will, in many cases, be operating for a substantial nonexempt purpose—serving the private interests of student-athletes—which is more than incidental to any exempt purpose furthered by the activity.

June 8, 2023