Author: Frank Carnahan

2022-01-14 IR-2022-11, January 12, 2022 The report credits the IRS for performing well under difficult circumstances including COVID. The IRS implemented significant addition programs, including 478 million stimulus payments (Economic Impact Payments or "EIPs") and Advance Child Tax Credit (AdvCTC), but "[t]he imbalance between the IRS's workload and its resources has never been greater." Since fiscal year (FY) 2010, the IRS's workforce has shrunk by 17%, while its workload –…

2022-01-06 in 2021, Congress passing the Corporate Transparency Act, which requires every corporation, LLC or similar entity that meets the definition of a “Reporting Company” to make a filing with the Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) identifying its beneficial owners or owners. FinCEN issued proposed regulations on this rule December 7, 2021, Notice of Proposed Rulemaking to give the public an opportunity to review and comment on…

2021-12-22 IRS Rev. Proc. 2021-52 updated Rev. Proc. 2020-54 procedures and identified circumstances for whether disclosure on a taxpayer’s income tax return for reducing penalties. The revenue procedure updates Rev. Proc. 2020-54, 2020-53 I.R.B. 1806, and identifies circumstances under which the disclosure on a taxpayer's income tax return with respect to an item or position is adequate for: reducing the understatement of income tax under Internal Revenue Code section 6662(d)…

2021-12-20 Beginning Dec. 31, 2021, the publicly available data provided by the IRS on electronically filed Forms 990 will be available solely on the TEOS webpage on IRS.gov. The IRS will no longer update the Form 990 series data on Amazon Web Services.

2021-12-10 The United States Tax Court issued a December 8, 2021, press release, following on On July 23, 2021, and August 16, 2021, press releases, regarding the significantly increased number of petitions received this 2021 year. From January 1, 2021, through November 30, 2021, the Court received 33,300 petitions. Approximately 20% of the total petitions filed were filed electronically. Electronic petitions were up to 30% in October and increased to…

2021-12-10 The IRS announced new how-to video series enabling taxpayers to avoid potential scams by considering and applying for an Offer in Compromise (OIC) themselves have been added. An offer in compromise allows a taxpayer to settle a tax debt for less than the full amount you owe if you qualify. Hopefully taxpayers can avoid paying excessive fees to companies who promise to lower taxes to pennies on the dollar.…

2021-12-10 Beginning with offers in compromise accepted on or after Nov. 1, 2021, the IRS will no longer recoup refunds for the calendar year in which the agreement was reached, according to interim guidance dated Oct. 28, 2021. The agency will no longer apply those refunds to outstanding debts for the year, or years, covered by the offer in compromise agreement. To prevent gaming, there is an exception to the…

The IRS announced that a limited liability company (LLC) must satisfy certain standards to receive a determination letter recognizing it as tax-exempt under Code Secs. 501(a)(1) and 501(c)(3). This does not affect the status of organizations currently recognized under Code Sec. 501(c)(3). LLC’s articles of organization and its operating agreement each include provisions requiring that: each member of the LLC be either:(1) recognized as aforementioned; (2) a governmental unit under…

2021-09-23 The Internal Revenue Service has awarded new contracts to three private-sector collection agencies for collection of overdue tax debts. The new contracts begin Thursday following today's expiration of the old contracts. Beginning Thursday, Sept. 23, 2021, taxpayers with unpaid tax bills may be contacted by one of the following three agencies: CBE Group, IncCoast Professional, IncConServePO Box 2217PO Box 526PO Box 307Waterloo, IA 50704Albion, NY 14411Fairport, NY 14450800-910-5837888-928-0510844-853-4875 Notification…

2021-09-14 One of many recent enhancements to the Online Account for individuals, thus new feature allows individual taxpayers to authorize their tax practitioner to represent them before the IRS with a Power of Attorney (POA) and to view their tax accounts with a Tax Information Authorizations (TIA). This new digital authorization option will be a much faster process. It will allow the IRS to reduce its current CAF inventory and…