A district court holds that reasonable cause remains an issue.
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TOPICS
Tax
IRS to clarify rules on payments in lieu of state and local taxes
The Service warns that a substance-over-form recharacterization may ensue.
SEPs: Simple but not always optimal
Simplified employee pension (SEP) plans can be attractive in the short term but over the long term can be expensive, inefficient, and inflexible.
Client communications protected by Sec. 7525
Knowing when this key protection does not apply is just as important for tax practitioners as knowing when it does.
PEO is statutory employer
The Tax Court allows a refund of overpaid Social Security taxes to professional employer organization Paychex.
Final rules govern adequate substantiation for charitable contributions
Final regulations address how taxpayers can comply with the requirements for adequate substantiation of charitable contributions of money or property.
Stock-based compensation cost-sharing regs. valid
The Ninth Circuit reversed a Tax Court decision invalidating a cost-sharing regulation that requires allocation of stock-based compensation costs between related parties.
States sue over state and local tax deduction cap
Four states have sued in U.S. district court, asking to invalidate the $10,000 limit on the deduction for state and local taxes enacted as part of last year’s tax overhaul.
Many tax-exempt organizations no longer need to list donor information
News IRS procedures eliminate the requirement for many exempt organizations to list certain substantial donors’ names and addresses on some forms.
AICPA: 2019 Form W-4 needs to be simplified
The AICPA’s Tax Executive Committee sent a letter to the IRS, urging the Service to simplify the proposed draft 2019 Form W-4, Employee’s Withholding Allowance Certificate.
Tax practitioners are warned to safeguard client data
The IRS warned that it is increasingly difficult for it to recognize fraudulent tax returns as cybercriminals succeed in getting more and more accurate information.
IRS guidance addresses limitations on business interest expense
Forthcoming regulations will cover consolidated groups and carryforward of pre-TCJA interest expense.
Claiming child tax benefits for noncustodial parents
IRS guidance on the waiver of a dependency exemption remains significant with the newly enhanced child tax credit.
Line items
HSA family coverage limit restored … Life settlement reporting delayed … Payroll tax credit for small business research activities clarified
Explaining refund payment delays to clients
PATH Act provisions and IRS security filters can often hold up the processing of legitimate refunds.
Analyzing the new personal casualty loss tax rules
Targeted relief is undercut by new statutory limitations included in the Tax Cuts and Jobs Act.
Charitable contribution deduction denied for conservation easement
The taxpayer expected a substantial benefit from the donation, the court holds.
IRS clarifies identity theft procedures
An affidavit is needed only when an unauthorized return has been filed using the taxpayer’s Social Security number.
First Circuit allows DISC dividends paid to Roth IRAs
The IRS suffers its second defeat when the First Circuit, agreeing with the Sixth Circuit, denies application of the substance-over-form doctrine to recharacterize DISC commissions and dividends as excess Roth contributions.
Levy on husband-and-wife LLC is upheld
Taxpayers’ claim they were a single-member limited liability company is belied by partnership returns, the Tax Court concludes.
Features
FROM THIS MONTH'S ISSUE
How to craft the CPA career you want
Want to pursue a work life that brings you purpose and joy? Learn how in this article from the Journal of Accountancy’s November issue.
From The Tax Adviser
October 31, 2026
AI risks to the Sec. 7525 practitioner privilege
September 30, 2026
Navigating the QSBS rules in pass-through structures
September 30, 2026
Sec. 338(h)(10) elections in business acquisitions
August 31, 2026
