Tax practice

The Internal Revenue Service identified 39.1 percent more attempts at fraudulent tax refunds last tax season than in the prior year, leading to tax refund delays early in tax season.

With the election out of the way and efforts taking shape in Washington to resolve the threat of automatic tax increases and the fiscal cliff, CPAs and certified financial planners are recommending ways to protect their clients no matter what Congress and the Obama administration ultimately decide to do about the tax laws for next year.

The Treasury Department said it is engaging with more than 50 countries and jurisdictions across the globe to improve international tax compliance and implement the information reporting and withholding tax provisions in the Foreign Account Tax Compliance Act.

It may be some time before Congress and the Obama administration decide what to do about the tax rates for next year, so it’s a good idea to plan for various alternative scenarios just in case.

CCH has introduced the new weekly electronic publication, Global Tax Weekly – A Closer Look, which promises to provide up-to-date analysis and insights into international tax developments.

The election results, while no surprise, have pretty much left us where we were in terms of tax policy, according to Roger Harris, president of Padgett Business Services.

In one of his last appearances before his departure on November 9, IRS Commissioner Doug Shulman touched on a number of issues confronting the service and the accounting profession in general.

In the aftermath of the elections, the payroll tax cut appears to be one of the likely casualties of the scramble to resolve questions over expiring tax cuts and the looming fiscal cliff during the lame-duck session of Congress.

In the wake of Sandy, the IRS has unveiled programs to help victims of the hurricane.

The chances for comprehensive tax reform occurring in the wake of Tuesday’s elections are murky at best, with a divided Congress and a re-elected President who has been unable to persuade Republicans to support his tax policies.

The re-election of President Obama is likely to result in substantial changes for taxpayers, especially with the expiration of the Bush-era tax rates approaching.

President Barack Obama delivered his acceptance speech early Wednesday morning after winning re-election in a hard-fought campaign against Republican rival Mitt Romney as the U.S. faces the risk of another plunge into recession with the expiration of the current tax rates coupled with deep automatic spending cuts.

The Internal Revenue Service’s decision to modify the timelines for withholding agents and foreign banks to comply with the stiff new due diligence requirements under the Foreign Account Tax Compliance Act is providing them, as well as taxpayers and preparers, with some welcome relief.

The IRS has issued procedures in Revenue Procedure 2012-43 concerning under what circumstances a frivolous tax submission penalty would be reduced. The procedure also details how a taxpayer may request a reduction in the penalty, which is assessed under Code Sec. 6702(a) or Code Sec. 6702(b), and the eligibility requirements for reduction.

The IRS is now sending letters to preparers who are suspected of filing inaccurate EITC claims.

The Internal Revenue Service needs to improve its efforts in investigating whether its own employees are inappropriately accessing taxpayer data, according to a new government report.

Jackson Hewitt Tax Service wants preparers and their clients to be aware of key disaster-related tax considerations in the wake of Superstorm Sandy.

The Internal Revenue Service is taking issue with a new report from the Treasury Inspector General for Tax Administration that faults the IRS for taking longer than expected to upgrade its computer systems to allow the use of SmartID cards for improved security.

Federal, state and local authorities have issued various forms of tax relief for those affected by Hurricane Sandy last week.

The H&R Block blog offers several tips for tax preparers to help clients recover from the devastation of Hurricane Sandy.