IRS TO CHECK MORE FOR ACCURACY-RELATED PENALTIES
Washington, D.C. - The Internal Revenue Service plans to check more often for accuracy-related penalties in future correspondence audits with taxpayers.
A report by the Treasury Inspector General for Tax Administration found that the IRS seldom considers the penalties during correspondence audits, and encourages the IRS to take additional steps to ensure the penalties are considered during correspondence audits. The penalty for both negligence and substantial understatement on an individual's tax return is 20 percent of the underpayment.
A TIGTA review of 229 correspondence audits closed in fiscal year 2008 found that 211 (or 92 percent) of the audits were not considered and assessed in accordance with IRS procedures for accuracy-related penalties.
The IRS agreed with TIGTA's recommendations and plans to take appropriate corrective actions. The agency will conduct accuracy-related penalty training and emphasize managerial reviews for penalty assertion and nonassertion. In addition, the IRS plans to submit a programming request to add the penalty lead sheets to the IRS's Campus Report Generating System and ensure the accuracy-related penalty is considered in Program Analysis System quality reviews.
THOMSON REUTERS ADDS NEW TAX & ACCOUNTING UNITS
New York - The Tax & Accounting business of Thomson Reuters has added two new business units, Business Compliance & Knowledge Solutions and Workflow & Service Solutions, led by Mark Schlageter and Brian Peccarelli, respectively, as the units' new presidents.
The BC&KS unit will provide tax and accounting research and guidance information, online media, CPA certification services, and governance, risk and compliance solutions to corporations, accounting firms and law firms around the world. The W&SS business will provide tax compliance, accounting, and practice management software solutions to corporate tax departments and accounting firms in markets around the world.
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