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IRS launches new initiatives using Inflation Reduction Act funding to ensure large corporations pay taxes owed; continues to improve service and modernize technology with launch of business tax account

October 20, 2023

Following a dramatically improved 2023 filing season thanks to Inflation Reduction Act (IRA) investments, the Internal Revenue Service has targeted IRA resources on strengthening enforcement, with announcements on new initiatives to pursue high-income, high-wealth individuals who do not pay overdue tax bills and complex partnerships.

  • federal tax

IRS announces withdrawal process for Employee Retention Credit claims; special initiative aimed at helping businesses concerned about an ineligible claim amid aggressive marketing, scams

October 19, 2023

As part of a larger effort to protect small businesses and organizations from scams, the Internal Revenue Service today announced the details of a special withdrawal process to help those who filed an Employee Retention Credit (ERC) claim and are concerned about its accuracy.

  • business and industry
  • practice management
  • federal tax

Projected tax gap jumps to $688 billion for tax year 2021

October 18, 2023

The projected gross tax gap jumped to $601 billion in tax year 2020 and $688 billion in tax year 2021, the IRS said in Publication 5869, released last week, adding that the figures do not cover areas such as corporate income tax and noncompliance with pandemic credit rules.

  • federal tax

IRS: Taxpayers impacted by the terrorist attacks in Israel qualify for tax relief; Oct. 16 filing deadline, other dates postponed to Oct. 7, 2024

October 14, 2023

The Internal Revenue Service announced tax relief for individuals and businesses affected by the terrorist attacks in the State of Israel. These taxpayers now have until Oct. 7, 2024, to file various federal returns, make tax payments and perform other time-sensitive tax-related actions. In Notice 2023-71PDF, the IRS provided relief to certain taxpayers who, due to the terrorist attacks, may be unable to meet a tax-filing or tax-payment obligation, or may be unable to perform other time-sensitive tax-related actions. The IRS will continue to monitor events and may provide additional relief.

  • advocacy - federal
  • federal tax

IRS slashes PTIN fee

October 05, 2023

The Internal Revenue Service is reducing the annual cost of a Preparer Tax Identification Number after a court ruled that the charge was too high.

  • federal tax

IRS developing contingency plan as government shutdown looms

September 22, 2023

The IRS is developing a contingency plan for a probable government shutdown, the union that represents the Service's workers said in a statement Friday.

  • federal tax

ERC abuse brings renewed push for regulation of paid tax preparers

September 21, 2023

Abuse of the employee retention credit (ERC) by aggressive promoters who make questionable promises has pushed Treasury to renew the call for the regulation of paid tax return preparers, an action that has the AICPA's support.

  • advocacy - federal
  • federal tax

IRS to establish special pass-through organization to help with high-income compliance efforts; new workgroup to blend current employees and new hires to focus on complex partnerships, other key areas

September 20, 2023

As work continues to focus more attention onto high-income compliance issues, the Internal Revenue Service announced plans today to establish a special area to focus on large or complex pass-through entities.

  • federal tax

IRS orders immediate stop to new Employee Retention Credit processing

September 15, 2023

To protect taxpayers from scams, the IRS has ordered an immediate stop to new Employee Retention Credit processing amid a surge of questionable claims, concerns from tax professionals, and aggressive marketing to ineligible applicants, posing unacceptable risk to businesses and the tax system.

  • advocacy - federal
  • federal tax

IRS previews changes in R&D tax credit form

September 15, 2023

The Internal Revenue Service released a sneak peak Friday of some of the changes it's hoping to make to the form for claiming research tax credits.

  • federal tax

IRS clarifies rules for new corporate alternative minimum tax

September 12, 2023

The Department of Treasury and the Internal Revenue Service today issued Notice 2023-64PDF to provide additional interim guidance designed to help corporations determine whether the new corporate alternative minimum tax (CAMT) applies to them and how to compute the tax.

  • federal tax

IRS vows new enforcement efforts aided by AI

September 08, 2023

In what he described as "the start of sweeping, historic effort," IRS commissioner Danny Werfel announced a plan to focus more tax enforcement efforts on the wealthy and those who abuse the law. While some of the plans are familiar — such as auditing more millionaires — the specificity is new, particularly an announced focus on large partnerships.

  • technology and cybersecurity
  • federal tax

Businesses must e-file Form 8300 for $10,000+ cash payments in 2024

August 31, 2023

Certain businesses that receive payments of over $10,000 in cash must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, electronically starting in 2024, the IRS said Wednesday in a news release (IR-2023-157). This new requirement applies to businesses that are required to file at least 10 information returns of one or more types other than Form 8300 in 2024.

  • business and industry
  • practice management
  • federal tax

IRS issues guidance on state tax payments

August 30, 2023

The IRS today provided guidancePDF on the federal tax status of refunds of state or local taxes and certain other payments made by state or local governments to individuals. The IRS previously provided guidance on state payments made in 2022 in news release IR-2023-23, IRS issues guidance on state tax payments to help taxpayers.

  • state tax
  • federal tax

IRS announces administrative transition period for new Roth catch up requirement; catch-up contributions still permitted after 2023

August 25, 2023

Today, the Internal Revenue Service announced an administrative transition period that extends until 2026 the new requirement that any catch-up contributions made by higher‑income participants in 401(k) and similar retirement plans must be designated as after-tax Roth contributions.

  • personal financial planning
  • federal tax

Tax pros give mixed reviews to wait times, service on PPS line

August 25, 2023

Tax professionals are giving mixed reviews to the wait times and quality of service for the IRS's Practitioner Priority Service (PPS) line, especially since the Service ended its pilot program to thwart line-jumping companies at the end of March.

  • federal tax

Location of millions of tax records uncertain, TIGTA says in IRS critique

August 11, 2023

The IRS is uncertain about what happened to millions of tax records with sensitive information that could be used "to commit tax refund fraud identity theft," the Treasury Inspector General for Tax Administration (TIGTA) said in a report posted Tuesday.

  • technology and cybersecurity
  • federal tax

TIGTA faults IRS cybersecurity program on 3 out of 5 metrics

August 07, 2023

The Treasury Inspector General for Tax Administration said the IRS cybersecurity program should not be considered fully effective, as three out of five of the criteria outlined in the agency's framework were considered to be "not at an acceptable maturity level."

  • technology and cybersecurity
  • federal tax

2023 tax software survey

August 01, 2023

The software that CPA tax preparers use to prepare clients' income tax returns is one of their most important professional tools. These products vary not only in such basic features as how tax return data is input and displayed but also in their adaptability to the myriad variations in tax clients' sources of income, deductions and credits, and other pertinent details. CPAs naturally take a keen interest in how performance of the products compares.

  • state tax
  • technology and cybersecurity
  • federal tax

IRS launches paperless processing initiative

August 01, 2023

Taxpayers will have the option to go paperless for IRS correspondence by 2024 filing season, IRS to achieve paperless processing for all tax returns by filing season 2025.

  • federal tax