Tax practice

The House voted to approve health care reform, moving the legislation now to an uncertain outcome in the Senate.

President Barack Obama has signed the extension of the First-Time Homebuyer Tax Credit, along with an extension of unemployment benefits.

A letter to IRS Commissioner Douglas Shulman may hold the key to the shape of the recommendations to be proposed before the end of the year on tax preparer registration.

The Internal Revenue Service is looking for taxpayers who are due to receive a combined $123.5 million from 107,831 refund checks that were returned to the IRS by the U.S. Postal Service due to mailing address errors.

At least 1,260 individuals appear to have erroneously claimed about $1.8 million in Health Coverage Tax Credits on their 2007 returns.

Congress has passed a bill on unemployment that would require electronic filing by all return preparers “except those who neither prepare nor reasonably expect to prepare ten or more individual income tax returns in a calendar year.” The measure is effective for returns prepared after Dec. 31, 2010.

The Senate voted by a 98-0 margin to extend the First-Time Homebuyer Tax Credit while also expanding the credit to existing homeowners who want to move to another residence.

The House Financial Services Committee voted to exempt small and midsized public companies from Sarbanes-Oxley audit requirements.

An IRS employee has admitted to stealing money from the mail that had been sent to the facility where she worked.

The IRS’s plans to create a new unit to examine high-income taxpayers with complex offshore tax structures could prove to be a boon to both accounting firms and tax attorneys.

Forty-three percent of taxpayer requests for copies of tax returns or transcripts were processed incorrectly or not in accordance with IRS guidelines, according to a new report.

Lee Zoeller, a partner at the international law firm Reed Smith LLP, recently began leading the Institute for Professionals in Taxation.

FedEx said the IRS’s audit team has decided not to assess federal employment taxes on FedEx Ground’s home delivery drivers, whom the company considers to be independent contractors.

Electronic tax filing set a new record this year, with 95 million individual federal income tax returns e-filed, up nearly 6 percent from last year’s total of nearly 90 million.

TIGTA: IRS MOSTLY ACCURATE ON RECOVERY REBATE

In recent months, the IRS has taken a more serious look at the long-talked-about idea of professional tax preparer registration.

During the downturn, many practitioners have found it necessary to brush up on the loss-deduction rules. When the economy is humming, an overabundance of income is usually available to offset any loss that might surface. When times get tough, however, a variety of loss-limiting rules under the Tax Code suddenly demand some attention. The "basket" approach to figuring out what loss can offset what income can be useful under these circumstances, especially as year-to-year tax planning may be available to offset the offsets.

IRS DROPS ACORN

The Treasury Inspector General for Tax Administration has concluded that cost overruns and schedule delays with the Internal Revenue Service’s Business Systems Modernization Program have increased during 2009.

The Internal Revenue Service needs to better manage the collection notices it sends to individuals, according to a new report from the Government Accountability Office.