What is practicing before the IRS?

In general, any tax professional (including in-house tax counsel) who submits Form 2848, Power of Attorney and Declaration of Representative, is considered to be “practicing before the IRS.” This means they’re subject to Circular 230. The IRS Office of Professional Responsibility has issued an alert that answers frequently asked questions about the issue. The alert […]

National Taxpayer Advocate wants improvements to correspondence audits

In a recent report to Congress, the National Taxpayer Advocate addressed several of her service’s FY 2024 priorities. One of them is to improve correspondence audit processes. Most IRS audits are conducted by correspondence (through the mail), but taxpayers often have trouble navigating the process. They may not, for example, understand the notices they receive, […]

IRS backlog continues

The IRS continues to have a backlog of unprocessed paper amended tax returns, the National Taxpayer Advocate (NTA) recently reported to Congress. However, the overall backlog of original and amended paper returns has been significantly reduced in the past year. “The IRS reduced its backlog of unprocessed paper tax returns from 13.3 million at the […]

PGA’s tax exempt status questioned

Some members of Congress are questioning the PGA Tour’s tax-exempt status after it announced a merger with the Saudi Arabian-funded LIV Golf. The PGA Tour is currently exempt from federal taxes under a section of the Internal Revenue Code designed for certain groups, including some sports leagues. Senate Finance Committee Chair Ron Wyden (D-OR) expressed […]

Offer in compromise rejected

Taxpayers who owe more taxes than they can pay may seek an Offer in Compromise (OIC) with the IRS to settle their debt for less than the amount owed. In one case, the IRS rejected the OIC request of a married couple who offered to pay $45,966 to settle their joint tax debt of $437,369. […]

Tax return on extension?

Did you request an automatic extension to file your 2022 tax return? If so, you still have until Monday, Oct. 16 to file, but there might be significant advantages to filing ahead of the deadline. That is, if you’re due a refund, the sooner you file your return, the sooner you’ll get your refund. Or, […]

District Court finds couple liable

In a recent U.S. District Court decision, the court found that a married couple who owed back taxes committed fraudulent transfers. The husband executed the transfers about four months after the IRS issued a notice of unpaid tax liabilities threatening a levy on the couple’s bank accounts and seizure of property. A total of $287,938 […]

Getting Married? A few more items to add to your to-do list

June brides (and grooms) take note: Marriage alters your tax status and adds a few more to-dos to what’s probably a long list. If one or both of you change your names, notify the Social Security Administration because their records must match those on your tax returns. You’ll be able to choose whether to file […]

Is your income taxable?

When filing your tax return, be aware that not all income is taxable. Some income is partially taxed or not taxed at all. Here are just some of the nontaxable items: qualifying adoption expense reimbursements; child support payments; gifts, bequests and inheritances; workers’ comp benefits; compensatory damages awarded for physical injury or physical sickness; cash […]

TFA makes changes to whistleblower program

The Taxpayer First Act (TFA), enacted in 2019, provides for increased communication between whistleblowers and the IRS. It also establishes legal protection against employer retaliation when whistleblowers report tax abuse to the IRS. The Treasury Inspector General for Tax Administration (TIGTA) recently conducted an audit to determine the effectiveness of the IRS’s Whistleblower Program. TIGTA […]