Six committees of the Taxpayer Advocacy Panel — including the one focused on toll-free phone lines such as the Practitioner Priority Service line — meet to hear public suggestions for customer service days after the IRS released its plan for an $80 billion influx of money.
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TOPICS
Tax
IRS unveils $80 billion spending plan
The IRS released its long-awaited strategic plan for spending the $80 billion it was allocated by last year’s Inflation Reduction Act. Over the first three years, the plan focuses on operations support, enforcement, business systems modernization, and taxpayer services.
Dirty Dozen: IRS scam list includes spear-phishing warning to tax pros
On its annual list, the IRS included a warning to tax pros and businesses to be cautious about opening emails and clicking on links that could result in identity theft.
No basis step-up for grantor trust assets if not in grantor’s estate
In a revenue ruling issued Wednesday, the IRS confirms that the step-up in basis under Sec. 1014(a) does not apply to the assets held by an irrevocable grantor trust when the grantor dies if the grantor’s gross estate does not include the assets of the irrevocable trust.
An educational lesson on UBIT
On remand, a district court again finds Mayo Clinic is entitled to an $11.5 million refund of unrelated business income tax, based on its status as an educational institution.
Line items
Final regs. expand company e-filing requirements … AICPA recommends 12 digital asset FAQs for IRS to post online … Taxpayers can now submit information online in response to 9 IRS notices … AICPA makes 61 proposals to Congress for changes to the Internal Revenue Code … Taxpayers can exclude certain 2022 state payments from federal returns
Name, image, liability
Student-athletes may face unexpected tax
liabilities from compensation for their name,
image, or likeness now allowable under
NCAA rules.
Beneficiary IRAs: A guide to the RMD maze
Advisers can aid inheritors of individual retirement accounts to make optimal choices for their required minimum distributions.
Emotional-distress settlement denied exclusion treatment
A university whistleblower’s damages did not address alleged physical injuries, the Tax Court concludes.
Bank deposits analysis upheld
The Tax Court rejects a taxpayer’s claim that the IRS’s reconstruction of his income included nontaxable proceeds from a real estate sale.
Dirty (Half) Dozen: Watch for these red flags when choosing a tax preparer
The IRS reached the halfway point of its annual “Dirty Dozen” list of tax scams, advising that taxpayers be careful when choosing a preparer to handle their returns.
NFTs as collectibles: IRS issues guidance and seeks comments
Pending further guidance that it intends to issue on the treatment of nonfungible tokens as collectibles, the IRS said that it will use a lookthrough analysis for determining if an NFT is a collectible.
Taxpayer services should get more of that $80 billion, advocate says
National Taxpayer Advocate Erin Collins wrote in her blog post Thursday that Congress should allocate more money from the Inflation Reduction Act’s $80 billion budget infusion over 10 years for the IRS to taxpayer services and business systems modernization and less to enforcement and operations.
ERC claims on returns prepared by others raise questions for tax pros
The IRS Office of Professional Responsibility issued a bulletin that reviews the Circular 230 professional responsibilities that apply to claims for the employee retention credit.
Questions about software tracking and reporting for basis of digital assets
Tax practitioners have many questions about how to track and report the basis of digital assets, and no clear guidance exists. Here are tips from the AICPA Virtual Currency and Digital Assets Tax Task Force.
Senate approves Danny Werfel as IRS commissioner
The Senate voted 54–42 on Thursday to approve Werfel, a former acting IRS commissioner who has served under both Democratic and Republican administrations.
Digital scanning of tax documents to expand, will add Form 1040 soon
The IRS announced that it will soon be able to scan paper Forms 1040 and 941 instead of inputting them by hand. The acting commissioner describes the expansion as “another milestone” in the agency’s transformation.
IRS clarifies required minimum distribution reporting
New guidance on required minimum distributions reporting provides relief for financial institutions that due to a change to the RMD start date rules made by the SECURE 2.0 Act, may have incorrectly provided RMD statements to IRA owners who turn 72 in 2023.
In-person IRS tax forums scheduled for first time since pandemic start
The three-day forums, last held in person in 2019, are designed specifically for CPAs and other tax professionals.
Lookback period extended for refunds related to pandemic postponements
In determining the beginning of the lookback period for refund claims for returns with due dates postponed by Notice 2021-21 or Notice 2020-23, the IRS will disregard the periods from April 15, 2020, to July 15, 2020, and from April 15, 2021, to May 17, 2021. This change will align the lookback periods with the postponed return filing due dates.
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