Tax practice

Important developments in tax from the previous month

The internal Revenue Service has always been able to match individual returns against information statements and propose under-reporter adjustments that come in the form of CP2000 notices. But things are changing, and a new era is upon us.

Tips for preparers ready to strike out on their own

The Internal Revenue Service released new income tax withholding tables for 2013 late Monday to reflect the expiration of the 2001 and 2003 Bush tax cuts and the more recent payroll tax cuts of 2011 and 2012, but noted that the guidance would be modified if Congress acts.

The U.S. Senate passed a bipartisan budget deal two hours after income tax cuts expired, reaching an after-deadline deal to undo the potential economic harm of $600 billion in tax increases and spending cuts.

The U.S. House of Representatives doesn’t plan any votes on the federal budget tonight, meaning that Congress for now will fail to avert $600 billion in tax increases and spending cuts set to start at midnight.

In addition to the previously announced Centralized Authorization File outage from December 26 to January 2 at 6 a.m. ET (see "IRS Warns of Service Disruption Christmas Week"), the IRS e-Services' Transcript Delivery System, Disclosure Authorization and Electronic Account Resolution systems will be unavailable for three additional business days. They should return to operation January 6.

The Internal Revenue Service has issued proposed regulations on the shared responsibility for large employers to provide health care coverage under the Affordable Care Act.

Senate Majority Leader Harry Reid rejected the latest Republican offer to resolve the U.S. fiscal crisis as Minority Leader Mitch McConnell reached out to Vice President Joe Biden in an effort to break the impasse.

The Internal Revenue Service has modified the mandatory language that tax preparers need to use when asking consent from their clients to use or disclose their tax information.

President Barack Obama summoned congressional leaders to a White House meeting three days before a year-end deadline to avoid $600 billion in spending cuts and tax increases as lawmakers gave little sign they intend to act together on a budget plan.

The Internal Revenue Service has finalized its regulations regarding how tax preparers can use and disclose the information on their clients’ tax returns.

A new Web site aims to help small business owners and their accountants deal with the increased burdens of Form 1099 filing by preparing and filing the forms online.

A new Web site aims to establish a competitive bidding system where tax preparers can compete for clients.

Congress is scheduled to return Thursday, with one of its top priorities a deal to avert the December 31 “fiscal cliff” deadline of looming tax increases and automatic spending cuts, but it will need to work quickly or reach some type of interim agreement.

Mitch McConnell, the Senate minority leader who has stayed largely outside the U.S. budget fight this year, will be thrust into prominence just five days before the deadline for tax increases and spending cuts.

The IRS has modified its Voluntary Classification Settlement Program, which lets employers change the tax treatment of their employees.

Time is running out for U.S. lawmakers and President Barack Obama to agree on a budget deal by year end to avoid triggering more than $600 billion in tax increases and spending cuts, Sen. Joseph Lieberman said on Sunday.

In the face of major uncertainty regarding the upcoming tax season, Jeff Gramlich, president of tax software developer CCH Small Firm Services, is urging tax preparers to get in touch and stay in touch with their clients.

The U.S. Attorney for the Southern District of New York earlier this week charged three current and former client advisors at Swiss bank Zuercher Kantonalbank with conspiring with at least 180 U.S. taxpayers and others to hide more than $420 million in offshore accounts from the Internal Revenue Service.