CPA Observation Post

AICPA Asks Congress to Provide Full Deduction for Administering Estates and Trusts (via @AccountingToday)

The American Institute of CPAs has written a letter to the leaders of the House Ways and Means Committee and the Senate Finance Committee asking them to amend the Tax Code to allow estates and nongrantor trusts to fully deduct the cost of complying with the fiduciary duties of administering estates and trusts. Read More>>

Identity theft and tax fraud get attention of Congress and TIGTA (via @AICPA_JofA)

House Ways and Means subcommittees held a hearing on identity theft and tax fraud on Tuesday, and the Treasury Inspector General for Tax Administration issued a report, faulting the Internal Revenue Service on the way it handles identity theft issues. IRS records show over 600,000 taxpayers were affected by identity theft in 2011. TIGTA made several recommendations for how the IRS can improve its service to taxpayers in this area. Read More>>

Congress Introduces Bill to Increase Tax Preparer Penalties (via @AccountingToday)

A bipartisan group of lawmakers have introduced legislation that would increase the penalties on tax preparers who defraud taxpayers and the Internal Revenue Service by altering tax returns for personal benefit without their clients’ knowledge. Read More>>

IRS May Have Missed 15,000 Groups That Lost Tax-Exempt Status (via @AccountingToday)

The Internal Revenue Service identified 279,500 tax-exempt organizations that did not file a return or notice for three consecutive years, but it potentially did not identify more than 15,000 organizations that failed to file for three consecutive years, according to a new government report. Read More>>

IRS Delays Reporting for Debt Instruments and Options (via @AccountingToday)

The Internal Revenue Service and the Treasury Department have decided to delay for a year the proposed effective date for cost basis reporting by brokers for debt instruments and options. Read More>>

IRS Increases Tax-Deductible Limits for Health Savings Accounts (via @AccountingToday)

The Internal Revenue Service has increased the tax-deductible annual contribution limitation for health savings accounts. For calendar year 2013, the annual limitation on deductions for an individual with self-only coverage under a high-deductible health plan is $3,250, up from the current level of $3,100 this year. Read More>>

Amazon Law Held Unconstitutional (via @AccountingToday)

In a decision that could have far-reaching impact, an Illinois state court judge has ruled that the state’s Amazon law, passed to tax online sales of in-state affiliates, is unconstitutional. Read More>>

Taxpayer Advocates Cope with IRS Tax Refund Delays and Identity Theft (via @AccountingToday)

Taxpayers who have been victimized by identity thieves who stole their tax refunds have become a major concern for local taxpayer advocates. Read More>>

Supreme Court Restricts IRS on Tax Shelter Enforcement (via @AccountingToday)

The Supreme Court ruled in favor of a company in a significant tax-related ruling that limited the ability of the Internal Revenue Service to pursue taxpayers over tax shelter cases for more than three years, as opposed to six. Read More>>

Draft bill gives IRS greater fire power against fraudulent tax preparers

A draft bill giving the Internal Revenue Service expanded collections authority and the ability to levy a new preparer fraud penalty would help rein in unscrupulous tax preparers who falsely increase a client's expected return and pocket the difference. The bill would allow the IRS to bypass the Department of Justice in getting authorization to file a suit against the preparer for smaller amounts. If the amount the preparer has stolen is egregious, the IRS would still use the DOJ to pursue criminal charges. Read More>>