Tax news and information - Journal of Accountancy

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March 1, 2024

Patent infringement litigation defense costs are not facilitative

An appellate court affirms a Tax Court decision allowing a generic drug manufacturer to currently deduct legal expenses.

March 1, 2024

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ERC disallowance letters sent to 20K+ taxpayers … Lower Form 1099-K threshold delayed again … Prop. regs. issued on conservation easement deduction disallowance … AICPA adopts revised tax standards … Proposed crypto regs. define ‘broker’ too broadly, industry says … Werfel: IRS must move quickly to show what a well-funded agency can do

February 29, 2024

IRS renews focus on targeting high-income nonfilers

IRS Commissioner Danny Werfel said Thursday that the effort will begin with compliance letters going out to high-income taxpayers in 125,000 cases where third-party information indicated federal tax returns have not been filed since 2017.

February 28, 2024

IRS announces delay for Form 1042 e-filing requirement

The Service said that U.S. withholding agents are administratively exempt from the requirement to e-file Forms 1042 during calendar year 2024, while foreign agents are exempt in calendar years 2024 and 2025.

February 23, 2024

FinCEN guide lists rules for some financial institutions’ access to BOI

The rules in the Small Entity Compliance Guide apply to access for some financial institutions and cover security and confidentiality, authorized use, administration of requests, and violations.

February 22, 2024

The clean-energy direct-pay election for not-for-profits and governmental entities

Under the Sec. 6417 direct-pay election, tax-exempt organizations, including not-for-profits and governmental agencies, can claim certain energy credits on their federal income tax returns, but to claim them for 2023, the direct-pay election must be made on a timely filed 2023 federal income tax return.

February 21, 2024

IRS to begin audits of personal, business use of corporate jets

IRS Commissioner Danny Werfel said Wednesday that the audits will focus on business vs. personal use of aircraft by large corporations, large partnerships, and high-income taxpayers.

February 20, 2024

The ERC: Practitioners’ responsibilities to amend income tax returns

Practitioners must weigh applicable professional standards and exercise due diligence in assessing whether a taxpayer claiming an employee retention credit must amend one or more income tax returns to reduce deductions of wages for which the credit was claimed.

February 16, 2024

No ‘gotcha’ enforcement of BOI regulations, FinCEN chief vows

Andrea Gacki, director of the Financial Crimes Enforcement Network, reassured a House committee that the agency can act only against willful violations of the new beneficial ownership information reporting rule.

February 16, 2024

On Form 1099-K delays, Werfel says IRS must protect taxpayer rights

IRS Commissioner Danny Werfel also discussed the employee retention credit and IRS funding when he appeared before the House Ways and Means Committee on Thursday.

February 13, 2024

7 warning signs that an ERC claim is questionable, from the IRS

As the March 22 deadline for the ERC voluntary disclosure program approaches, the IRS alerted small businesses to seven red flags that it is focusing on when it reviews claims.

February 9, 2024

EFIN scam targets tax professionals

The IRS warns that the scammers want to gain access to data and identities so they can file fraudulent tax returns.

February 8, 2024

Form 1099-K frequently asked questions revised

Almost 50 new or updated frequently asked questions for the IRS’s Form 1099-K, Payment Card and Third Party Network Transactions, published Tuesday, include guidance on common situations, along with more clarity for the payment card industry about which organizations should send Forms 1099-K.

February 7, 2024

Study: IRS could collect billions more with full funding

A study shows that the Service can collect $561 billion in tax revenue over 10 years if it receives the funding from the Inflation Reduction Act of 2022 as written.

February 7, 2024

Auto depreciation limitations increase

The IRS issued the 2024 depreciation limitations for passenger automobiles, including those for which bonus depreciation is applied.

February 1, 2024

House OKs $78B tax bill with changes to ERC and child tax credits

The bill, which now goes to the Senate, also delays amortization of research or experimental costs and restores tax breaks for companies from 2017’s Tax Cuts and Jobs Act.

February 1, 2024

Line items

AICPA, others call for a one-year extension of BOI report deadline … COVID-19 changes allowing e-signatures made permanent … IRS emphasizes strides as it presses to keep funding … ‘As if they were never filed’: IRS outlines steps to withdraw ERC claims … 13 states will participate in IRS Direct File pilot

February 1, 2024