Tax-exempt Organizations' Reporting Requirements

The IRS posted a list of FAQs (updated 4/5/10) annual reporting requirements for exempt organizations. See the list here.

IRS Continues to Increase Oversight of Tax Return Preparers to Improve Compliance

IRS Continues to Increase Oversight of Tax Return Preparers to Improve Compliance.  See here for more.

Justice Department Highlights Tax Enforcement Results

Department of Justice highlights it success.  See the press release here.

Proposed Reg Issued Regarding Return Preparer PTINs

The IRS has issued the first proposed regulations related to Return Preparer Review Implementation. REG-134235-08 outlines a mandatory requirement for return preparers to use Preparer Tax Identification Numbers (PTINs) and provides examples of the meaning of the term tax return preparer for the purposes of the IRC section 6109.  See the proposed Regulation here.

Summary of Health Care

House Speaker Pelosi has issued a summary of the health care reform act.  The summary can be found here.

New IRS Program - Rapid Response Appeals Process

The IRS is implementing a pilot program that provides new priority procedures for pyramiding in-business trust fund (IBTF) Collection Due Process (CDP) cases in Appeals. This program is referred to as the Rapid Response Appeals Process (RRAP).  A description of the program can be found here.

Tax Court Denies Charitable Deduction

In Friedman v. Commissioner, TC Memo 2010-45, the Tax Court denied the taxpayers claimed charitable contribution deductions for the donation of equipment.  The Tax Court found that the taxpayers did not strictly comply with the substantiation requirements of Section 1.170A-13, Income Tax Regs.  On the otherhand the taxpayers contend their documentation satisfied the substantial compliance doctrine according to Bond v. Commissioner, 100 T.C. 32, 40-41 (1993).  The Tax Court found that the taxpayers did not establish substantial compliance because they did not provide adequate descriptions of the equipment and did not identify the valuation methods used, the manner of acquisition, and the cost bases of the equipment.

The Tax Court further held that the taxpayers' documentation did not satisfy the requirement of Section 170 of the Internal Revenue Code in that the taxpayers did not obtain contemporaneous written acknowledgments of the donations.

Penalties under Section 6662(a) of the Code were also imposed.

IRS Releases 2009 Data Book

The Internal Revenue Service has announced the release of the 2009 IRS Data Book, an annual snapshot of agency activities for the fiscal year.  You can view the Data Book here.

IRS Updates List of Dirty Dozen Tax Scams

The Internal Revenue Service issued its 2010 "dirty dozen" list of tax scams, including schemes involving return preparer fraud, hiding income offshore and phishing.  The list can be found here.

IRS Outlines Additional Steps to Assist Unemployed

The Internal Revenue Service has announced several additional steps it is taking this tax season to help people having difficulties meeting their tax obligations because of unemployment or other financial problems. See the announcement here.

The steps include additional flexibility on offers in compromise for struggling taxpayers, a series of Saturday "open houses" offering taxpayers extra opportunities to work out tax problems face to face with the IRS, special outreach with partner groups to unemployed taxpayers and the availability of more information on a special section of the IRS Web site.