The IRS’s annual series continues with caveats about fake communications intended to bilk taxpayers out of their tax and financial information.
Tax
‘OIC mills’ and ‘ghost’ preparers in ‘Dirty Dozen’
Sketchy operations target tax debtors for offers in compromise, and preparers who remain anonymous on returns generally have something to hide, the IRS says in its ongoing series.
More ‘Dirty Dozen’: Tax refund theft and fake charity appeals
The IRS continued its annual series, highlighting threats to ordinary taxpayers from would-be thieves.
Abusive CRATs and Maltese IRAs among ‘Dirty Dozen’ tax scams
The first installment of the Internal Revenue Service’s annual feature focuses on four abusive transactions and arrangements.
Changes to Form 1099-K
Recent changes in reporting requirements will lead to mistakes, but taxpayers should not ignore them.
Line items
More Schedule K-2 and K-3 FAQs posted … SALT cap challenge is denied Supreme Court review … Supreme Court holds Tax Court not bound by petition filing deadline … IRS funding, technology assessed in House hearing … Treasury equity action plan reports progress
Supervisory penalty approval must only precede assessment, not first formal notice
The Ninth Circuit overturned a Tax Court decision and disagreed with the precedent it was based on.
Tax advice for clients who day-trade stocks
Communicate the benefits of the mark-to-market election.
Value of split-dollar arrangement is not its cash surrender value
In the latest IRS challenge to an intergenerational split-dollar arrangement, the taxpayer prevails.
Senators request details on IRS info return destruction
The inquiry posed seven specific questions to the IRS concerning the decision, how it was arrived at, its potential effects and whether the Service has destroyed such documents before processing them at any other time.
Senators urge 2-D barcoding of paper-filed tax returns in 2023
Fourteen GOP members of the Senate Finance Committee added their voices to National Taxpayer Advocate Erin Collins’s recent directive to the Internal Revenue Service relating to processing of paper-filed returns.
IRS mostly correct on recovery rebate credits, TIGTA says
The IRS administered the recovery rebate credit correctly for all but 0.7% of returns in the 2021 filing season, the Treasury Inspector General for Tax Administration found.
Ukraine aid eligible for leave-based donations programs
Employees may exclude from gross income the value of leave donated to their employers funding payments to relieve victims of the Russian invasion of Ukraine.
Tax equity research lacks demographic data, GAO reports
The US Government Accountability Office found disparities in the distribution of some tax items, but notes impediments to knowing taxpayers’ race, ethnicity, and sex.
House subcommittee queries audit rates, IRS resources
Officials from the IRS and the US Government Accountability Office address legislators’ questions on taxpayer service and enforcement across income levels.
IRS audit rates decreased most for wealthy, GAO finds
In a study, the US Government Accountability Office finds that the IRS’s individual tax audit rates decreased by 72% during 2010–2019, and by a greater percentage for higher-income taxpayers than for lower-income ones.
Why a busy-season debrief has value, and why it’s not just for tax teams
Three CPAs discuss the importance of planning to have a debrief after an intense period of work, whether tax season or a busy sales cycle, in this podcast with transcript.
IRS blames old tech in destruction of information returns
The IRS responds to a report by the Treasury Inspector General for Tax Administration that pointed to the March 2021 incident as one example demonstrating a need for the Service to increase e-filing options.
Helping build a better tax system
A CPA describes his journey from a small practice to advising the IRS and Congress on issues of tax policy and administration.
TIGTA: IRS should work to expand e-filing
The Treasury Inspector General for Tax Administration finds a lack of coordinated effort across the IRS to fulfill opportunities for wider electronic return filing.
Features
SPONSORED REPORT
Preparing clients for new provisions next tax season
As the 2025 filing season approaches, H.R. 1 introduces significant tax reforms that CPAs must be prepared to navigate. These legislative changes represent some of the most comprehensive tax updates in recent years, affecting both individual and corporate taxpayers. This report provides in-depth analysis and guidance on H.R. 1.
