2014-02-21TaxE-Alert: IRS Delays Health Coverage Penalty; New International Checklist Available 


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      AICPA
    Feb. 21, 2014
    Tax Section News
     
      Exclusive Tax Section member communications  
             
     
    In This Issue
      TOP NEWS
    IRS Further Postpones Health Coverage Penalty for Mid-sized Employers
    Registered Tax Return Preparer Program Struck Down by Appeals Court
    More Changes Ahead for Form 1099-K Reporting
    Steps Toward Financial Fitness for this Year and Beyond
    What's Happening in Washington?
    Coffee Break — the lighter side of tax
    Tax News from the Journal of Accountancy
      TOOLS & RESOURCES
    New One-Stop Shop for Resources, Tools, and Aids on NIIT
    New International Tax Checklist Now Available
    Need Help Sorting out the Tangible Property Regulations?
    Suggested Bookmark: Everything You Need for Tax Season Resources on One Page
    How Would U.S. Bitcoin Transactions be Taxed?
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    Top News
       
    IRS Further Postpones Health Coverage Penalty for Mid-sized Employers

    The IRS announced that it is delaying the shared-responsibility requirement under Sec. 4980H for employers who have 50 to 99 full-time equivalent employees in 2014 (T.D. 9655). These employers will now have until 2016 to offer health care coverage to their employees or be subject to the shared-responsibility payments. It is key to note that these employers will still be required to report on their workers and health care coverage in 2015. Read more. Learn more by participating in the ACA Tax Update on Feb. 27.

    Registered Tax Return Preparer Program Struck Down by Appeals Court

    The IRS’ attempt to regulate unenrolled tax return preparers was dealt another blow Tuesday as the D.C. Circuit Court of Appeals held that the agency exceeded its statutory authority when it issued regulations imposing various requirements on tax return preparers (Loving, No.
    13-5061 (D.C. Cir. 2/11/14), aff’g No. 1:12-cv-00385 (D.D.C. 1/18/13)). Read more.

    More Changes Ahead for Form 1099-K Reporting

    The IRS has released the 2014 draft Form 1099-K and corresponding instructions. Changes include a new optional “card not present” box for reporting sales done online or via phone. There is also an additional reporting requirement for payees who have been previously notified of incorrect taxpayer identification numbers. The result may decrease future notices and save some time with the matching process.

    Steps Toward Financial Fitness for This Year and Beyond

    For a vast majority of Americans, the current tax filing season will be business as usual, with few changes to the ground rules of recent years. For the very affluent, it may bring sticker shock. Tax rates have increased and deductions and credits have been reduced for many affluent people. But at nearly every income level, dealing with the tax code is often a frustrating business, and discovering the best way to manage the burdens and benefits can alleviate some of the distress. Read more.

    What’s Happening in Washington?

    The AICPA Tax Division and its outstanding volunteers are working on many fronts to ensure policymakers hear the CPA’s voice on tax administrative and policy issues — recent efforts: 

    • Asking Congress to fully fund the IRS. AICPA provided written testimony noting that the “onslaught of new issues, including administration of the Affordable Care Act and extensive new reporting requirements under the Foreign Account Tax Compliance Act, and the alarming increase in taxpayer identity theft cases, are substantially encumbering the IRS’ already limited resources.”
    • Offering more than 30 technical tax law fixes that could be enacted without controversy. The AICPA’s recommendations to Congress include simplifying tax treatment of Roth IRA contributions, repealing the Section 7122(c) requirement for a 20% partial payment with a lump sum offer in compromise and repealing the anti-churning rule of Section 197(f)(9).
    • Urging the IRS adopt a draft revenue ruling to eliminate confusion on partnership targeted allocations. Targeted allocations are a common method used in allocating income, gain, loss, deductions and credits among partners of partnerships. As there is not clear guidance in the area, they are frequently misused.
    Coffee Break — the lighter side of tax

    IRS Disputes Value of Michael Jackson Estate

    The Internal Revenue Service has filed documents in U.S. Tax Court claiming that Michael Jackson’s estate has severely undervalued his image and music catalog, telling the pop star’s executors that the estate owes an extra $505 million in taxes, plus $197 million in penalties. Read more.

    IRS Commissioner Addresses Nation's Taxpayers on 2014 Filing Season via YouTube

    It’s that time of year when the “tax season” freebie calls start to come in daily. Someone wants to know the cost of tax preparation, or if their brother can deduct his fishing trip to Mexico, or may schedule an appointment but just want a quick answer to a simple tax question. How about this year you direct them instead to the video by the new IRS commissioner who shares all of the resources they can use to help themselves? The IRS released a YouTube message from Commissioner John Koskinen to the nation’s taxpayers providing tips and help for the 2014 filing season. The video is available at IRS.gov and the IRS YouTube channel.

    Other Tax News from the Journal of Accountancy
    “Dirty Dozen” tax scam list now includes telephone scams (02/19/2014)
    New IDR Procedures Postponed until March 3 (02/10/2014)
    Crowdfunding poses benefits, risks (02/05/2014)
     
    AICPA TOOLS & RESOURCES
     
    New One-Stop Shop for NIIT Tools, Resources, and Aids

    To assist practitioners with implementing the new 3.8% net investment income tax (NIIT), the AICPA has developed a wide selection of resources, several of which have been updated due to the final regulations released in Jan. 2014. These resources range from webcast archives, podcasts, presentations, flowcharts, checklists and more! Make sure to check them out on the dedicated web page.

    New International Tax Checklist Now Available!

    Do you have individual clients who were transferred overseas for work?  We have a new checklist for you! Check out our recently added International Tax Checklist – U.S. Income Taxation of Expatriates. This checklist will assist you in identifying income tax issues concerning the transfer of U.S. employees to foreign jurisdictions.

    Need Help Sorting out the Tangible Property Regulations?

    Don’t miss one of the Tax Division’s most popular resources!  Members are flocking to the Tangible Property Regulations page to use the AICPA's Summary Chart and FAQ's to save time and ensure they have the information they need to manage the new rules.

    Suggested Bookmark: Everything You Need for Tax Season Resources on One Page

    As you may already know, the AICPA Tax Division launched a Tax Season Resources page focused on the news, resources and updates you need to access quickly during your busy season. For example, we have quick links to key technical resources (like the tangible property resource page or the DOMA page), links to relevant articles from the Journal of Accountancy and The Tax Adviser, and archives of select webcasts (e.g., the net investment income tax four-part webcast series from January). To keep you “in the know”, we are updating the page regularly throughout tax season. Bookmark the page then check back often!

    How Would U.S. Bitcoin Transactions be Taxed?

    Bitcoins are a hot commodity even with all the uncertainty surrounding them. AICPA Tax Section member and volunteer Dave Baldwin takes a look at this invention and offers his views on tax scenarios. 

     
     
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