2/22/2013 Tax E-Alert: IRS Releases Additional Forms, 7216 Guidance Deferred, Tax Reform Video, and New Tools for Tax Season and Beyond and more... 


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    Check out our newest video discussing the AICPA’s current and anticipated tax reform efforts.
           
      AICPA
    Feb. 22, 2013
    Tax Section News
     
      Exclusive Tax Section member communications  
     
    In This Issue
        TOP NEWS  
    AICPA Raises Concerns About IRS Delays in Release of Tax Forms
    IRS Extends Effective Date for New Section 7216 Guidance
    What is AICPA Proposing for Tax Code Cleanup This Year?
    Unclaimed Property Voluntary Disclosure Program Available in Delaware Until June 30
    IRS Extends CCA Forensic Training Deadline
    AICPA Participates in Small Business Administration “Repair Regs” Roundtable
    Other Tax News from the Journal of Accountancy
      TOOLS & RESOURCES
    Updated Tax Practice Quality Control Guide Now Available
    Tax Law Changes Incorporated Into All AICPA Tax Checklists
    Tentacles of State Tax on Professional Services Could Reach CPAs (Blog)
    Free Tax Law Snapshot Brochure
    Tax Planning After the Healthcare Surtax: Tools, Tips, and Tactics Now Available
      UPCOMING EVENTS
    Tax Training Week at the Bellagio in Las Vegas
    Advanced Estate Planning Conference
    Advanced Tax Quarterly: Understanding the New Complexities of Multi-State Taxation
    Webinar Archives Available On Demand (Without CPE)
    TAX POWER HOUR

    Coming Up on the Tax Power Hour: Managing Extensions (March) and Tax Season Debrief (April)
    Contact us

    taxsection@aicpa.org

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    Upcoming Events
     
    Advanced Tax Quarterly: Understanding the New Complexities of Multi-State Taxation
    March 20, 2013
    1pm – 2pm ET
    Registration Options:
     - Discounted CPE (1 hour)

    AICPA Tax Planning, Compliance and Controversy Conference...For Businesses and Individuals

    May 15 - 17, 2013
    Las Vegas, NV

    • Early–bird discount of $75 if you register by 3/31/13
    • Tax Section members save an additional $100

    AICPA Conference on Tax Strategies for the High-Income Individual

    May 20 - 21, 2013
    Las Vegas, NV

    • Early–bird discount of $75 if you register by 4/05/13
    • Tax Section members save an additional $100
       
    Next Tax Power Hour
     


    Managing Extensions

    March 21 from 1pm - 2pm ET
    Free, No CPE Available

    Although it is still February, in just a few weeks it will be time to start planning for filing extensions. So, our discussion in March will be dedicated to all aspects of the extension process. With the increased compression of filing season due to the delay of forms by IRS, you may be filing more extensions this year than usual. We will review IRS guidance on signature requirements for e-filing extensions and walk through a few other best practices for preparing and filing extensions. We will also cover batch e-filing, extensions with payments due, e-filing extensions with electronic payments and prioritizing client work immediately after filing season.

     
     
     
    Top News
     
    AICPA Raises Concerns About IRS Delays in Release of Tax Forms

    In a Feb. 15 letter to the IRS, the AICPA raised concerns about the impact in the IRS’ delay in releasing certain tax form is having on taxpayers and CPAs. These form delays are causing taxpayers and tax preparers to face a very compressed and difficult filing season.

    The letter states that while the AICPA is pleased with the recent release of Form 4562 (Depreciation and Amortization) and Form 8863 (Education Credits), we remain concerned about the continuing delay in the release of 29 other forms. The AICPA requested a dialogue with the IRS to gain more clarity on IRS’ plans to release the remaining forms, and provide taxpayers with potential reasonable cause relief from failure to file, failure to pay, and estimated tax penalties.

    IRS Extends Effective Date for New Section 7216 Guidance
    In December 2012, the IRS released final regulations (T.D. 9608) and Rev. Proc. 2013-14 under Internal Revenue Code section 7216, involving the disclosure or use of tax return information by a tax return preparer. The IRS recently released Rev. Proc. 2013-19 which extends the effective date of Rev. Proc. 2013-14 to Jan. 1, 2014. In general, section 7216 imposes up to one year imprisonment or a $1,000 fine (or both) on tax return preparers who knowingly or recklessly make unauthorized disclosures or uses of tax return information. Read more.
    What is AICPA Proposing for Tax Code Cleanup This Year?

    While many major tax policies continue to be debated in Washington, the AICPA believes many technical issues can be resolved with less controversy, making practitioners and taxpayers' lives easier. We recently submitted our Compendium of Legislative Proposals on provisions in the Internal Revenue Code that need attention. The Compendium covers a broad range of problems that continue to vex preparers and taxpayers such as overlapping education tax incentives and varying mileage rates and proposes solutions that help simply tax administration.

    Unclaimed Property Voluntary Disclosure Program Available in Delaware Until June 30

    Practitioners with businesses or business clients in, or incorporated in, Delaware may want to consider and evaluate whether any businesses might benefit from applying to the newly enacted Delaware unclaimed property voluntary disclosure agreement (VDA) program. Applications for the program are due by June 30 to get the maximum benefit, so this is a time-sensitive opportunity for businesses to catch-up on their past due unclaimed property obligations, avoid an audit and/or interest and penalties, and reduce their liability by significantly shortening their look-back period.

    On Jan. 30, additional Delaware legislation was enacted that gives an extra year – until June 30, 2015, to complete the VDA, and allows holders who previously entered into a VDA to enter a new VDA for other property types or periods as well as subsidiaries or related entities not covered by the prior VDA. A webinar has been scheduled for May 1 at 3pm ET and registration links will be available soon on our CPE and Events page. For more information, visit the VDA website and the AICPA resource page on unclaimed property.

    IRS Extends CAA Forensic Training Deadline
    The IRS recently issued revised standards for Individual Taxpayer Identification Number (ITIN) applicants, effective Jan. 1. A significant component of the ITIN application process is the use of Certifying Acceptance Agents (CAAs). The IRS recently extended the deadline for CAAs and responsible parties to complete a forensic training requirement to Dec 31. In general, this forensic training is designed to help CAAs identify fraudulent identification documents, such as passports, driver’s licenses, birth certificates, visas and national identification cards.
    AICPA Participates in Small Business Administration “Repair Regs” Roundtable

    On Feb. 14, the AICPA lead an SBA roundtable discussion regarding the tangible personal property guidance and how it affects small businesses. Several other organizations also participated. For more information on this topic, check out our tangible property resources page.

    Other Tax News from the Journal of Accountancy
      • AICPA raises concerns about delayed, compressed tax season (02/15/13)  
    • U.S. and Switzerland sign FATCA agreement (02/14/13)
    • IRS issues annual whistleblower report to Congress (02/13/13)
    AICPA TOOLS & RESOURCES
     
    Updated Tax Practice Quality Control Guide Now Available

    The Tax Practice Responsibilities Committee has published an updated Tax Practice Quality Control Guide (TPQC). A quality control system is broadly defined as a process that provides tax professionals with reasonable assurance that they and any personnel (owners, partners, officers, employees, and other associates of the tax practice) comply with applicable professional, statutory, and regulatory requirements regarding its tax practice. The TPQC Guide helps achieve these goals through sample quality control documents designed specifically for sole proprietorships, firms without a structured tax department and firms with a structured tax department.

    Tax Law Changes Incorporated Into All AICPA Tax Checklists

    taxpowerhourThe 1040, 1120S, 1120C, and 1041 tax checklists have been updated with the tax law changes for 2012 returns. If you already started working in the Interactive Tax Checklists, you will need to upgrade your checklist before you finalize them. To upgrade, you must be logged in as the firm administrator. From there, you will see a green arrow icon notifying you that an upgrade is available. Simply click that icon and follow the on-screen instructions. This process may take several minutes and you will be able to review a report to see what has been deleted or modified in the checklist.

    The Word and PDF versions have also been updated and are available for downloaded anytime. Please note, the PDF versions are not “clickable." For interactive functionality, members are encouraged to use the Interactive Tax Checklist, then print the final, completed checklist to PDF for your files.

    Tentacles of State Tax on Professional Services Could Reach CPAs (Blog)

    As states look to fix their budget woes, some are looking at taxing services, which would generally include accounting. Three states have already enacted such a tax and two have been recently proposed in Ohio and Minnesota. Learn more about this trend and efforts to stop it in blog by AICPA Senior Technical Manager Eileen Sherr.

    Free Tax Law Snapshot Brochure

    The Tax Law Snapshot brochure is a concise overview of key tax law provisions and potential tax benefits that will affect individuals and small businesses this filing season (2012 tax year). This professionally designed brochure reflects current tax law as of Feb. 6 and highlights future changes that will require planning with their CPA.  Add your logo or name and contact info, then post on your website, include in mailings, or place copies in the waiting area for your clients to peruse.

    Tax Planning After the Healthcare Surtax: Tools, Tips, and Tactics Now Available

    The new 3.8% Medicare surtax will affect your clients in 2013 and beyond, but there are steps that you can take now to protect your clients’ interests and mitigate the effects that the surtax has on your clients and their assets and their estates. Learn how to protect your clients’ interests and preserve their assets with Tax Planning After the Healthcare Surtax: Tools, Tips, and Tactics. In addition to an explanation of the issues, the toolkit provides a variety of other resources, including:

    • Client letters and checklists for individual clients and estates and trusts,
    • Two PowerPoint presentations – one focused on individuals and closely held businesses, the other on trust and estates,
    • Charts and flowcharts
      • Healthcare chart with examples and summary of the law
      • Healthcare flowchart to test and planning for the surtax
    • A downloadable (PDF) book packed with citations, explanations and examples

    Tax Section members can purchase this new multimedia product for $53, that’s a 10% savings off the regular AICPA member price.

    UPCOMING EVENTS
     
    Tax Training Week at the Bellagio in Las Vegas

    This year, when you register for the AICPA Tax Planning, Compliance and Controversy Conference together with the AICPA Conference on Tax Strategies for the High-Income Individual you save 10% automatically at checkout when purchased online. 

    AICPA Tax Planning, Compliance and Controversy Conference...For Businesses and Individuals, May 15 – 17, 2013

    AICPA Conference on Tax Strategies for the High-Income Individual, May 20 - 21, 2013

    AICPA Advanced Estate Planning Conference

    July 15-17, 2013
    Baltimore Marriott Waterfront, Baltimore, MD

    taxpowerhour

    Advanced Tax Quarterly: Understanding the New Complexities of Multi-State Taxation
    March 20, 1pm to 2pm ET

    Don't let the complexities of multi-state taxation overwhelm you! Join AICPA and host Dominque Molina as we offer this lively online session that discusses the ongoing complexities of multi-state taxation and conformity issues that affect millions in the wake of federal law changes. Scheduled topics are designed to help you:

    • Discuss conformity issues as it pertains to recent and upcoming federal tax law changes.
    • Develop knowledge of multistate tax compliance.
    • Address nexus complications as it pertains to ongoing debates over online sales.
    Webinar Archives Available On Demand During Tax Season

    Compliance and Planning Issues with the 3.8% Medicare Surtax
    Speakers: Bob Keebler, David Kirk and Adrienne Mikolashek
    Originally Aired: 1/17/13

    The PFP Section web seminar discusses what CPA tax practitioners and financial planners should do for planning and compliance, the rules and impact on clients including estates and trusts, how the passive loss rules apply, the new guidance and issues to be aware of regarding the surtax, the calculation of net investment income, special computational rules for charitable remainder trusts and charitable lead trusts and advanced planning ideas.

    IRS "Fresh Start" Initiatives for Tax Liens, Installment Agreements and Offers in Compromise
    Speakers: Mary Lou Gervie
    Originally Aired: 11/28/12

    The IRS has liberalized the requirements to qualify for offers in compromise (OIC) and installment agreements. This webcast reviews the new rules designed to help individuals and small businesses meet their federal tax obligations and avoid tax liens, provides insights into the IRS collection process and explains other improvements the Service has made in the OIC and installment agreement programs over the last two years.

    How to Advise Victims of Identity Theft
    Speakers: Daniel Moore
    Originally Aired: 08/07/12

    In recent years, the IRS has implemented a number of procedures to combat tax-related identity theft and protect taxpayers. This webinar provides CPAs with strategies to address potential occurrences of fraud involving their client's tax return information. Topics include:

    • How to work with the IRS should your client become a victim of identity theft
    • How to clear up a client’s record with Social Security and the IRS
    • Obtaining a new Social Security Number

    Tax Practice Quality Control - Staying in Balance
    Speaker: Jina Etienne
    Originally Aired: 07/26/12

    Circular 230 requires practitioners to have a system in place to ensure that their procedures are consistent with Circular 230. This session discusses those requirements and explored what the components of those systems should be and addresses questions such as:
    • What are the ethical requirements?
    • How do you monitor the system?
    • What are the factors that influence a QC system?
    • What are the responsibilities of firm leadership?
    • What should be included in a procedures manual?
    Coming Up on the Tax Power Hour: Managing Extensions (March) and Tax Season Debrief (April)
    taxpowerhour

    Although it is still February, in just a few weeks it will be time to start planning for filing extensions. So, our discussion in March will be dedicated to all aspects of the extension process. With the increased compression of filing season due to the delay of forms by IRS, you may be filing more extensions this year than usual. We will review IRS guidance on signature requirements for e-filing extensions and walk through a few other best practices for preparing and filing extensions. We will also cover batch e-filing, extensions with payments due, e-filing extensions with electronic payments and prioritizing client work immediately after filing season.

    Then on April 25, we will take a look back at filing season. In our annual Tax Season Debrief, we will be joined by two practitioners who will look back over their busy season and answer the question: how did it go? We’ve extended our “hour” to 90 minutes so we can cover both a technical (e.g. How did you handle Congress’ last-minute tax law change and the IRS delay in starting filing season?) and administrative perspective (e.g., Did you have any significant or unusual processing issues?). This month’s discussion will help you look back and break down your performance so you can consider changes you may want to implement today and other issues to consider later this year as you start planning process for next year.

    The Tax Power Hour is our monthly webcast for Tax Section members only, that focuses on strategies to help tax practitioners save time, reduce stress and run an efficient practice through practical discussions on topics such as Practice Management, Business Development, Leveraging Technology and more.  Speakers are tax practitioners and other experts sharing their advice and best practices to help make you more profitable.

    If you missed a previous Tax Power Hour, you can listen again anytime.  Archives are available for one year after each event.

     
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