LIST OF SUBSTANTIVE CHANGES AND ADDITIONS. PPC s Guide to Dealing with the IRS. Twenty-fourth Edition (June 2016)

Size: px

Start display at page:

Download "LIST OF SUBSTANTIVE CHANGES AND ADDITIONS. PPC s Guide to Dealing with the IRS. Twenty-fourth Edition (June 2016)"

Lorena Wiggins
5 years ago
Views:

1 LIST OF SUBSTANTIVE CHANGES AND ADDITIONS PPC s Guide to Dealing with the IRS Twenty-fourth Edition (June 2016) The following are some of the features of this year s update of PPC s Guide to dealing with the IRS: Taxpayer and Preparer Penalties. Under new legislation, certain taxpayer and preparer penalties are adjusted for inflation and the number of penalties subject to these inflation adjustments has increased. Also, new legislation has made changes to a number of penalties. The Guide has revised and updated its discussion of these penalties and the summary table of penalties for this new legislation. Worker Classification Checklist. Worker classification requires the determination of whether a worker is an employee or an independent contractor. This issue is receiving increased attention from the IRS. The Guide has added a new checklist to assist the practitioner in determining proper worker classification under the common law control rules. Private Debt Collections. Budgetary problems have created a shortage of collection employees to handle cases. New legislation authorizes the IRS to enter into private contracts to collect outstanding tax debts. The Guide has added a discussion of this topic. Restitution-based Assessments. Restitution can often be ordered in criminal cases. The Guide has added a discussion of these so-called Restitution-based Assessments, including the special filing requirements for restitution-based liens. Innocent Spouse Relief. The topic of innocent spouse relief is constantly changing and evolving as new regulations are frequently issued. The Guide has expanded its coverage of innocent spouse relief for newly released regulations dealing with determining whether a requesting spouse has meaningfully participated and explaining how to properly request relief. Preparer Due Diligence. New legislation has introduced special preparer due diligence requirements with regard to the earned income credit and has expanded the requirements to other tax credits. The Guide has added discussion of these expanded due diligence requirements. In addition to these featured items, the 2016 edition of your Guide includes the following update items: Chapter Substantive Changes and Additions Reference Chapter 1 Overview of IRS Practice 1. The Guide has added discussions of the National Sections 101 Taxpayer Advocate s latest reports to Congress. and A note has been added about the potential impeachment of IRS Commissioner Koskinen. Section A note has been added about the restructuring of the Large Business and International (LB & I) Division of the Section 101

2 Chapter 2 Tax Overpayments and Interest Chapter 3 Statutes of Limitations Chapter 4 Audit Procedures and Taxpayer Rights Chapter 5 Audits of Individual Returns Chapter 6 Audits of Business Returns IRS. 4. The Guide has added a discussion of Commissioner Koskinen s annual speech before the National Press Club. Section The IRS organizational chart has been updated for Appendix 1A 6. The contact information for the taxpayer advocate in each state has been updated. Appendix 1F 1. The list of common reasons cited by the IRS as to why tax refunds may be delayed has been updated. Section The Guide has revised and updated the discussion of taxrelated identity theft for current status and developments. Section A discussion of how the timely mailing/timely filing rule applies to e-filed returns has been added. Section The list of IRS-approved private delivery services has been updated for new participants. Section The Guide has expanded the discussion of interest netting. Section The Guide has added a discussion of TAM in which the IRS took a different stance from a previous TAM as to how the rules apply to an overpayment refund resulting from an IRS-initiated adjustment. Section The list of IRS-approved private delivery services has been updated for new participants Section The six-year statute of limitations for omissions of gross income has been changed due to recent legislation. Section New regulations have been issued regarding disclosure of participation in reportable transactions. Section A discussion has been added regarding a special exception for persons in the Armed Forces from the provisions dealing with passport revocation for those taxpayers that are seriously delinquent in paying their taxes. Section The Guide has expanded its discussion of attorney-client privilege in criminal case situations. Section The Guide revised its discussion of the due date for filing the FBAR form, pursuant to new legislation. Section The Guide briefly discusses the restructuring of the LB & I division Section A law change alert is added indicating new partnership Section 607

3 Chapter 7 Audits of Other Returns Chapter 8 Appeals and Alternative Dispute Resolution Chapter 9 Assessments and Abatements Chapter 10 Collection Procedures, Installment Agreements, and Thirdparty Collection Issues audit rules will take effect for partnership tax years beginning after December 31, The Guide has revised and updated the discussion of penalties for failure to file information returns to reflect new penalty amounts as amended by the 2015 Trade Preferences Extension Act. Section The Guide has revised the discussion of penalties for failure to file information returns to reflect that penalty amounts are now adjusted for inflation and included the inflation adjust amounts for 2015 and Section The discussion of due dates for information returns has been revised. Section The Guide has revised the discussion of the de minimis exception for failure to file information returns to include new provisions provided by the 2015 PATH Act. Section The section on Exempt Organization examination initiatives has been revised. Section The Guide has updated the list of information returns subject to failure to file or failure to furnish penalties. Appendix 7F 7. A new checklist for applying the Common Law Control Test has been added. Appendix 7G 1. A discussion of Rev. Proc has been added regarding changes to the Industry Issue Resolution Program. Section A discussion of an IRS project to streamline docketed Appeals cases has been added. Section The Guide has been updated for the elimination of the Appeals arbitration process. Section The Guide revises and expands the discussion of Collection Due Process Appeals. Section A discussion of frivolous appeals has been added. Section The discussion of appealing an Offer In Compromise has been revised Section The Guide expanded the discussion of abatement of interest on an assessment. Section The Guide expands the discussion of the telephone contact stage of the collection process to include information about scammers. Section 1002

4 Chapter 11 Liens, Levies, Seizures, and Sale of Taxpayer s Property Chapter 12 Innocent Spouse Relief Chapter 13 Offers in Compromise Chapter 14 The Trust Fund Recovery Penalty Chapter 15 Bankruptcy Chapter 16 Representing Nonfilers Chapter 17 Taxpayer and 2. The Guide adds a discussion of private debt collectors, as allowed by recent legislation. Section The Guide expands the discussion on the collection of delinquent state and local taxes Section The Guide expands the discussion of the effect of bankruptcy on installment agreements to pay taxes. Section The Guide adds a discussion of restitution agreements involving criminal cases. Section The Guide expands the discussion of the IRS treatment of the effect of unrecorded conveyances of real property on the creation of a federal tax lien. Section A discussion of the special filing requirements for restitution-based liens has been added. Section The Guide expands its discussion of continuous levies. Section A discussion on the levy and seizure of publicly traded stocks is added. Section The Guide has expanded the discussion on the doctrine of res judicata for determining whether a requesting spouse has meaningfully participated, pursuant to newly released proposed regulations. Sections 1201 and The discussion of how to properly request relief has been updated for newly released proposed regulations. Section The Offer in Compromise Form 656 has been updated. Appendix 13D 1. The discussion of the determination of a responsible person for purposes of the penalty has been expanded, adding relevant new case discussions. Section The Guide expands the list of items to consider when negotiating an installment agreement for a corporate client to repay trust fund taxes. Section None 1. The Guide expands the list of indicators of fraud for purposes of the non-filer program. Section The Guide discusses the increased penalty amounts for failure to file K-1 s. Section 1601

5 Preparer Penalties Chapter 18 Criminal Penalties Chapter 19 Rules of Practice Chapter 20 Access to Information 1. The Guide has updated the definition of tax underpayment for a change made by the 2015 PATH Act. Section The Guide has added a discussion of IRS Chief Counsel Notice dealing with the change in the definition of tax underpayment and its impact on the Rand decision and Chief Counsel Notice Section The authority for items deemed to be adequately disclosed on a tax return has been updated for the most recent IRS pronouncement. Section The discussion of when the Section 6676 penalty for erroneous refund claims does not apply is updated for a change made by the 2015 PATH Act. Section The Section 6651(a)(1) failure-to-file penalty amount has been updated for a change made the Trade Act of Section The Guide has added a table showing the various penalty amounts for failure to file information returns. Section The discussion of the FBAR penalties has been updated for penalty relief provided by the 2015 Transportation Act as well as IRS guidance on penalty relief for delinquent FBAR reports. Section The discussion of the preparer penalty due to willful or reckless conduct as been updated for changes made by the 2015 PATH Act. Section The special due diligence requirements that apply to tax preparers preparing returns showing certain tax credits has been update to reflect the additional credits added by the 2015 PATH Act. Section The table summarizing taxpayer and return preparer penalties has been updated for the various changes made by the 2015 PATH Act. Appendix 17A 11. The table summarizing Form 8938 and FBAR reporting requirements has been updated for the change to the FBAR reporting deadline. Appendix 17H 1. The Guide expands its coverage of parallel investigations (conducting criminal and civil investigations simultaneously). Section The Guide has added discussion of the lawsuit filed by the AICPA against the IRS with regard to the IRS s Voluntary Preparer Certification Program. Section The Guide expands the discussion on contingent fees to include a summary of the Ridgely case dealing with the preparation of ordinary refund claims. Section The Guide s discussion on special preparer due diligence requirements with regard to the earned income credit is updated for changes made by the 2015 PATH Act expanding the requirements to additional tax credits. Section 1904

6 Chapter 21 Managing an IRS Engagement Chapter 22 Client Profiles 1. The Guide has updated its discussion of the term unenrolled return preparers as used in the updated Form 2848 instructions A note has been added regarding CCA stating that one representative cannot sign Form 2848 on behalf of another representative The Guide has updated its discussion for information about the data breach to IRS s Get Transcript Online service and IRS initiatives to prevent further tax-related identity theft The list of items for which the IRS normally does not issue letter rulings has been updated The Guide has added a discussion of the IRS position regarding Section 7216 disclosure and consent requirements for tax preparers who offer health care enrollment services to clients (under the Affordable Care Act) The Guide has updated the list of common reasons Form 2848 is rejected, according to the IRS. Appendix 20B 7. A table has been added showing IRS fees related to Freedom of Information Act (FOIA) requests. Appendix 20D 1. None 1. None

LIST OF SUBSTANTIVE CHANGES AND ADDITIONS. PPC s Guide to Dealing with the IRS. Twenty-third Edition (June 2015)

Route To: j Partners j Managers j Staff j File P.O. Box 115008 Carrollton, TX 75011-5008 Tel (972) 250-7750 (800) 431-9025 Fax (888) 216-1929 tax.thomsonreuters.com LIST OF SUBSTANTIVE CHANGES AND ADDITIONS