Tax news and information - Journal of Accountancy

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December 1, 2022

Improperly forgiven PPP loans must be included in income

An IRS Chief Counsel memo states that income exclusion does not extend to Paycheck Protection Program loan forgiveness for which the recipient is ineligible, such as by misrepresentation or omission.

December 1, 2022

‘Family support’ payments not deductible as alimony

The divorce instrument included a child-related contingency, the Tax Court holds.

December 1, 2022

Proposed AICPA tax standards address new concerns

CPAs are encouraged to comment on the proposed standards.

November 30, 2022

Clean energy project prevailing wage rate and apprenticeship requirements issued

The IRS releases guidance on wage and apprenticeship requirements for enhanced tax benefits under clean energy provisions of the Inflation Reduction Act.

November 29, 2022

AICPA recommends changes to IRS draft revisions for Schedule UTP

The AICPA said the current draft of Schedule UTP places a “significant burden” on both taxpayers and practitioners.

November 23, 2022

TIGTA: Taxpayers would benefit if IRS used digital communications tools appropriately

An audit report from TIGTA says taxpayers would benefit if the IRS used digital communications tools appropriately. The IRS challenged much of the audit report, including saying that TIGTA didn’t understand some of the agency’s objectives for its digital communications program.

November 22, 2022

Proposed regulations provide guidance on foreign tax credit rules

Proposed foreign tax credit regulations provide guidance on the reattribution asset rule for purposes of allocating and apportioning foreign taxes, the cost recovery requirement, and the application of the source-based attribution requirement to withholding tax on royalty payments.

November 18, 2022

Congressional report criticizes contractor used by IRS during pandemic

The statement says ID.me inflated the amount of work it could provide and the amount of federal dollars lost to pandemic fraud, the latter in an effort to increase demand for its services. In his response, the CEO says he would not use such a crisis to help his company.

November 17, 2022

For the IRS to-do list: Build trust with Congress, use clearer language with taxpayers

The IRS Advisory Council issued a report Wednesday that emphasized recurring themes such as the need for consistent and multiyear funding and the importance of effective communication with taxpayers.

November 14, 2022

One deadline approaches for over 9 million eligible for pandemic-era benefits

In October, the IRS said it would leave Free File open for an extra month, until Thursday, so eligible taxpayers can claim their share of several benefits including the 2021 recovery rebate credit, the child tax credit, and the earned income tax credit.

November 10, 2022

National taxpayer advocate: 2022 could be ‘Groundhog Day’ for IRS backlog

National Taxpayer Advocate Erin Collins writes on her blog that there’s little time left for the IRS to clear its backlog by end of 2022 as the IRS commissioner promised Congress earlier this year.

November 9, 2022

Tax conference takeaways: IRS service, corporate minimum tax, and more

Three CPAs who attended last week’s AICPA & CIMA National Tax Conference share items of note for tax practitioners from the event.

November 9, 2022

Plan approval program expands to Sec. 403(b) retirement plans

The IRS and Treasury will allow churches, public schools, and charities with Sec. 403(b) retirement plans use the same individually designed retirement plan determination letter program that qualified retirement plans use.

November 8, 2022

Practitioner Perspectives series to continue within IRS Appeals

The Practitioner Perspectives series will continue at the IRS Independent Office of Appeals as part of the office’s focus guide for fiscal year 2023. During the series, tax practitioners share insights and feedback with Appeals employees.

November 4, 2022

IRS seeks comments on several green energy tax credits

The IRS asks for comments by Dec. 3 on tax credits included in the Inflation Reduction Act, including the commercial clean vehicles provision.

November 3, 2022

IRS news, Roth conversion considerations, stopping elder financial abuse

Hear about one Inflation Reduction Act concern posed by a leading taxpayer advocate and catch up on recent JofA news and feature articles.

November 3, 2022

National taxpayer advocate has concerns about $400,000 audit promise

National Taxpayer Advocate Erin Collins expressed concern for voluntary compliance amid Treasury’s promise that increased IRS funding will not be used to audit people earning under $400,000. She spoke during a session at the annual AICPA & CIMA National Tax Conference.

November 1, 2022

Past commissioners set optimistic tone for next IRS commissioner in AICPA panel

Two former IRS commissioners addressed the agency’s issues at an AICPA panel and sounded a note of optimism for the future, based on new funding and pending technology improvements.

November 1, 2022

Ask the Expert: The rise of contactless tax services

John Sapp is the chief revenue officer at Drake Software, one of the largest professional tax software companies in the nation. As a certified public accountant since 1987, he has considerable experience in public and private accounting for the technology industry.

November 1, 2022