Tax practice

Although audits are a fact of taxpayer life, they're not particularly pleasant, and they can take up a lot of otherwise free time. So what should preparers say to their clients about audits?

Highlights of some of our favorite tax-related blogs from the past week.

The IRS has named 27 new members to serve on the nationwide Taxpayer Advocacy Panel, a federal advisory committee charged with providing taxpayer suggestions to improve IRS customer service.

The Internal Revenue Service is urging taxpayers to resist the urge to call the agency for answers to tax questions as it anticipates an avalanche of phone calls next week and is instead asking them to go online for help.

The Organization for Economic Cooperation and Development has developed a new global standard for automatic exchange of tax information among nations in response to a mandate from finance leaders of the G20 countries to combat tax avoidance and evasion.

The California Tax Education Council is cautioning tax preparers that they still need to meet state-mandated requirements despite the Internal Revenue Service’s loss in its court appeal to regulate tax preparers.

The late start to tax season will re-arrange software maker Intuit Inc.’s revenues by about $120 million, according to the company’s latest outlook, released Tuesday.

Rep. Blake Farenthold, R-Texas, has reintroduced legislation to provide tax exemptions to American athletes who win medals in the Olympics.

An Internal Revenue Service employee who also prepared taxes on the side has been charged with tax fraud and aggravated identity theft.

A group of Republican senators has introduced legislation to prevent the Internal Revenue Service from finalizing for one year proposed regulations governing how much political activity tax-exempt 501(c)4 social welfare organizations can legitimately conduct.

With tax season in full swing, it’s a good reminder that families with household employees have some impending deadlines. As most tax professionals are aware, the often overlooked household employment taxes – or “nanny taxes” – present a unique set of challenges.

The Internal Revenue Service’s new commissioner John Koskinen has released a message to taxpayers for this tax season, urging them to use the agency’s Web site and warning of long wait times on the phone.

The D.C. Circuit Court of Appeals ruled Tuesday that the IRS had no legal authority to impose a nationwide licensing scheme on tax return preparers that would have required testing and continuing education as Registered Tax Return Preparers.

The Treasury Department and the Internal Revenue Service issued final regulations Monday implementing the employer shared responsibility provisions of the Affordable Care Act, also known as the employer mandate, providing additional time to small and large businesses.

Harvard University pledged to ensure restitution for as many as 11,000 employees after two of its faculty pointed out the impact of a tax error by the school.

Some of our favorite recent tax fraud cases …

The Internal Revenue Service is warning taxpayers to be sure to notify the Social Security Administration before they file their taxes if they have changed their own name or the name of one of their dependents has changed. Otherwise their tax refund could be delayed.

The Internal Revenue Service has issued a revenue procedure to help taxpayers with so-called “mezzanine” financing in workouts and similar circumstances when they have debts that have been discharged in connection with real property.

Senate Finance Committee chairman Max Baucus, D-Mont., was confirmed Thursday as U.S. Ambassador to China, which could prolong an investigation of the Internal Revenue Service’s handling of tax-exempt applications, along with tax reform efforts.

Businesses often take a risk in the development of new products and processes.