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Archive for IRS

2016 IRS Data Book Shows Chances Of Being Audited

Ephraim Moss

The IRS has published the 2016 version of its annual IRS Data Book, which contains statistical information about the IRS and taxpayer activities during the previous year. The IRS Data Book helps illustrate the breadth and complexity of the U.S. tax system. According to the Data Book, during fiscal year 2016 (Oct. 1, 2015 to Sept. 30, 2016), the IRS collected overall more than US$ 3.3 trillion from taxpayers, processed more than 244 million tax returns and other forms, and issued more than $426 billion in tax refunds.

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Another Example Of 20th Century Tax Compliance

Annette Nellen

One of the email alerts I received from the IRS recently was Tax Tip 2017-48, Helpful Tips to Keep in Mind When Amending Your Tax Return. I want to focus on tip #1 of the nine provided. Here it is:

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Learn About IRS & Captives – Captive Insurance Webinar

Hale Stewart, captive insurance

Starting in the mid-1970s, and continuing through the UPS case, the IRS fought captives tooth and nail. Over the course of these cases, they advanced three different legal arguments against captive insurance: the economic family argument, the nexus of contracts and the assignment of income doctrine.

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When Flagged For An IRS Audit, Choose The Fast Track

Barry Fowler

If you’ve never been audited, you may not know that when the IRS audits you, it could take up to a year or more to complete the audit.

If you have been audited you know that audits are time consuming and fraught with endless worries.

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AICPA & Other Groups Call For Improvements To IRS Services

Annette Nellen

Years ago, the IRS had about 104,000 employees. Today it is around 83,000. Certainly, they don’t need as many people to open envelopes due to e-filing, but this change results in a big drop in taxpayer services and audits. A common lament I hear from tax practitioners is the challenge of having to deal with notices from the IRS. It is difficult to get to talk to someone from the IRS who has the knowledge and file access needed to resolve the issue and you likely need to wait 30 minutes or more to talk to someone.

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Private Debt Collection Of Overdue Federal Taxes Starts

Ron Marini

The IRS announced that it plans to begin private collection of certain overdue federal tax debts next spring and has selected four contractors to implement the new program. Starting April 2017, the Internal Revenue Service will begin sending letters to a relatively small group of taxpayers whose overdue federal tax accounts are being assigned to one of four private-sector collection agencies.

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Keep Mailing Letters To IRS Despite The Modern Era

Annette Nellen

Chief Counsel Advice 201710027 (3/10/17) states that determination letter requests, such as on Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, cannot be faxed to the IRS because an original signature is required.

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IRS Enforcement Actions Decline 16% In 2016

Ron Marini

The 2016 IRS Data Book describes activities conducted by the IRS from Oct. 1, 2015, to Sept. 30, 2016, and includes information about returns filed, taxes collected, enforcement, taxpayer assistance, the IRS budget and workforce as well as other data. This edition contains charts that show trends such as increases in telephone service and declines in enforcement activities when compared to 2015.

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The Service Issues New Administrative Authority Governing R&D Tax Credit Claim Filers

On Thursday, March 30th, the Department of the Treasury (hereinafter the “Treasury Department”) and Internal Revenue Service (hereinafter the “Service”) issued interim administrative guidance in the form of IRS Notice 2017-23 clarifying how eligible start-up companies (i.e., those companies with less than $ 5 million in gross receipts and earning revenue for less than 5 years) can take advantage of a new option enabling them to apply part or all of their R&D Tax Credit against their federal-level payroll tax liability, instead of their income tax liability. As a reminder prior to January 1st of 2016, taxpayers could only take the R&D Tax Credit against their income tax liability.

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2017 Vehicle Depreciation Limitations IRS Rev Proc 2017-29

John Dundon, vehicle depriciation

According to IRS Rev Proc 2017-29 (assuming IRC 168(k) applies) 1st year magic numbers are:

  • $11,160 for passenger autos
  • $11,560 for Trucks and Vans

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New FATCA Agreements Released, 2014 Agreements Expire

William Byrnes

The IRS released Revenue Procedure 2017-21, which contains the updated withholding foreign partnership (WP) agreement and withholding foreign trust (WT) agreement.

The revenue procedure provides information on submitting an application or request for renewal of a WP or WT agreement.

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2017 Budget Is Trouble For the IRS

Ron Marini

We previously discussed that IRS employees could be in for a rocky ride if President-elect Donald Trump and Congress move forward with sweeping pledges to rein federal employee benefits and cripple unions.

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