Working Virtually: Use a virtual private network to secure remote locations; Part 3 of Security Summit tips for tax professionals

IR-2020-176, August 4, 2020 — As more tax professionals consider teleworking during COVID-19, the IRS and the Security Summit partners today urged practitioners to secure remote locations by using a virtual private network (VPN) to protect against cyber intruders.

Proposed rules govern carried interests

The Irs issued proposed regulations under Sec. 1061, enacted by the law known as the Tax Cuts and Jobs Act, which requires owners of certain partnership interests to hold them for three years to be eligible for capital gain treatment.

James Lee selected to lead IRS Criminal Investigation

IR-2020-175, August 3, 2020 — The IRS announced today that James Lee will become the new chief of IRS Criminal Investigation (CI) on October 1.

One-Third of New York’s Small Businesses May Be Gone Forever

Small-business owners said they have exhausted federal and local assistance and see no end in sight after months of sharp revenue drops. Now, many are closing their shops and restaurants for good.

Small Businesses Got Emergency Loans, but Not What They Expected

The S.B.A.’s disaster relief program allows for loans of up to $2 million. But now they’re capped at $150,000 — and agency officials are saying little about why.

U.S. Small Business Bailout Money Flowed to Chinese-Owned Companies

Millions of dollars of Paycheck Protection Program loans went to China-backed businesses in critical sectors, a study found.

Offside penalty — IRS

To win a client’s tax case, it helps to know the IRS’s rulebook.

Tax Court denies deduction for conservation easement

The deed fails to protect conservation purposes in perpetuity, the court finds; a divided opinion holds the extinguishment regulation is valid.

Liquidation of assets not mandated for taxpayers’ installment agreement

The Tax Court finds the taxpayers' residence and other properties were necessary for the production of income or the health and welfare of the family.

Supervisory approval of penalties

Federal courts continue to clarify the contours of the Sec. 6751(b) managerial approval requirements for certain penalty assessments.

Line items

State law applied in lieu of Bob Richards rule ... Amended returns to join the electronic age ... Midyear cafeteria plan changes allowed

‘Retail glitch fix’ gets guidance

Methods for claiming bonus depreciation and 15-year class life for qualified improvement property provide relief but come with a deadline.

More Than 1,000 Companies Boycotted Facebook. Did It Work?

Major advertisers on Facebook reduced their spending by millions of dollars in July, but not enough to significantly damage the platform’s revenue.

Simplified accounting rules issued for small businesses

The IRS issued regulations on the simplified accounting method rules for small business taxpayers enacted in 2017 by the law known as the Tax Cuts and Jobs Act.

IRS to allow faxing of automatic method change requests

The IRS announced that, beginning Friday, in response to the coronavirus pandemic, it is temporarily accepting duplicate copies of Form 3115, Application for Change in Accounting Method, sent by fax instead of mail.

A Collapse That Wiped Out 5 Years of Growth, With No Bounce in Sight

The second-quarter contraction set a grim record, and it would have been worse without government aid that is expiring.

IRS grants additional relief for rehabilitation credit deadlines

IR-2020-173, July 30, 2020 — Because of the burdens the COVID-19 pandemic has placed on taxpayers claiming the rehabilitation credit, the Internal Revenue Service today issued Notice 2020-58 that provides additional relief to taxpayers in satisfying the substantial rehabilitation test.

IRS issues proposed regulations for TCJA’s simplified tax accounting rules for small businesses

IR-2020-174, July 30, 2020 — The Internal Revenue Service today issued proposed regulations proposed regulations updating various tax accounting regulations to adopt the simplified tax accounting rules for small businesses under the Tax Cuts and Jobs Act (TCJA).

IRS issues business interest expense limitation guidance

The IRS issued a package of related guidance on the business interest expense limitation enacted in the law known as the Tax Cuts and Jobs Act and amended by the CARES Act.

IRS: New law provides relief for eligible taxpayers who need funds from IRAs and other retirement plans

IR-2020-172, July 29, 2020 — The Internal Revenue Service provided a reminder today that the Coronavirus Aid, Relief, and Economic Security (CARES) Act can help eligible taxpayers in need by providing favorable tax treatment for withdrawals from retirement plans and IRAs and allowing certain retirement plans to offer expanded loan options.

IRS issues final regulations and other guidance on business interest expense deduction limitation

IR-2020-171, July 28, 2020 — The Internal Revenue Service issued final regulations regarding the provision of the Tax Cuts and Jobs Act that limits the deduction for business interest expense, including basic statutory amendments made by the CARES Act.

‘This Is About Justice’: Biden Ties Economic Revival to Racial Equity

In the last of four proposals laying out his vision for economic recovery, Joseph R. Biden Jr. pledged to lift up minority-owned businesses and to award them more federal contracts.

How to Open a Top-Tier Restaurant in a Pandemic? Rethink Everything

This one, Ever, debuts Tuesday in Chicago with a pricey tasting menu and a world-class chef. But on the road to its opening, lofty visions have met hard reality.

Working Virtually: Use multi-factor authentication to protect accounts; Part 2 of Security Summit tips for tax professionals

IR-2020-170, July 28, 2020 — With heightened threats during COVID-19, the Internal Revenue Service and Security Summit partners today called on tax professionals to select multi-factor authentication options whenever possible to prevent identity thieves from gaining access to client accounts.

Guidance on recapture of excess employment tax credits

The IRS issued temporary and proposed regulations on how it will recapture excess credits taken by employers under recent coronavirus relief legislation.

These Businesses Lasted Decades. The Virus Closed Them for Good.

The pandemic has wiped out the longstanding anchors of New York neighborhoods.

IRS provides guidance on recapturing excess employment tax credits

IR-2020-169, July 27, 2020 — The Internal Revenue Service issued a temporary regulation and a proposed regulation to reconcile advance payments of refundable employment tax credits and recapture the benefit of these credits when necessary.

Tailors Know New Yorkers’ Pandemic Secret: ‘Everybody Got Fat!’

Tailors across New York City are expanding waistlines and moving buttons to accommodate the “Quarantine 15.”

That Flour You Bought Could Be the Future of the U.S. Economy

Keep baking bread. Small grain companies may suggest a better path for American business.

IRS reminds businesses filing cash transaction reports about e-file option; batch filing now available

IR-2020-168, July 22, 2020 — The Internal Revenue Service reminds businesses required to file reports of large cash transactions that e-filing is a fast, easy and secure option for filing their reports.

GILTI rules address income subject to high foreign tax rate

The IRS issued final regulations under the global intangible low-taxed income (GILTI) rules on the treatment of income subject to a high rate of foreign tax. At the same time, the IRS issued proposed rules conforming the GILTI high-tax exception rules with the Subpart F high-tax exception.

IRS creates new Enterprise Digitalization and Case Management office; Smith, Abold-LaBreche to serve as co-directors

IR-2020-166, July 21, 2020 — The Internal Revenue Service announced today the creation of the new Enterprise Digitalization and Case Management office, which will spearhead IRS efforts to empower taxpayers and IRS employees to rapidly resolve issues in a simplified digital environment.

Working Virtually: Protect tax data at home and at work with the "Security Six;" Part 1 of Security Summit tips for tax professionals

IR-2020-167, July 21, 2020 — With cyberthieves active during COVID-19, the Internal Revenue Service and the Security Summit partners today urged tax professionals to review critical security steps to ensure they are fully protecting client data whether working in the office or a remote location.

Treasury, IRS issue final and proposed regulations on income subject to a high rate of foreign tax

IR-2020-165, July 20, 2020 — The Department of the Treasury and the Internal Revenue Service today issued a final regulation addressing the treatment of income earned by certain foreign corporations that is subject to a high rate of foreign tax.

IRS advice for those who missed the July 15 deadline, file now to avoid bigger bill

IR-2020-164, July 20, 2020 — For those who missed the July 15 tax deadline and didn’t request an extension, the Internal Revenue Service reminds taxpayers about some important tips, including filing electronically as soon as possible to reduce potential penalties.

Fed expands Main Street Lending Program to more not-for-profits

The Federal Reserve board announced that it has made changes to the Main Street Lending Program to allow more participation from not-for-profits, including educational institutions, hospitals and social service organizations.

IRS updates annual Dirty Dozen tax schemes for 2020

The IRS issued its top 12 “Dirty Dozen” tax scams, warning people to be vigilant to avoid these schemes all year round. New to the list is the “offer in compromise mills.”

IRS: Seniors, retirees not required to take distributions from retirement accounts this year under new law

IR-2020-162, July 17, 2020 — The Internal Revenue Service today reminds seniors and retirees that they are not required to take money out of their IRAs and workplace retirement plans this year.

Security Summit focuses on tax pro security during coronavirus; new series on working virtually: protecting tax data at home and at work

IR-2020-163, July 17, 2020 — The Internal Revenue Service and the Security Summit partners today urged tax professionals this summer to review critical security steps to ensure they are fully protecting client data whether working in the office or a remote location.

IRS reinstates PTIN user fees

The IRS said it would once again begin charging fees to issue preparer tax identification numbers (PTINs) to tax return preparers for 2021. The fee was reduced in response to court cases that challenged the IRS’s authority to charge a fee.

IRS debunks tax refund myths

IR-2020-161, July 16, 2020 ― With the July 15 tax deadline now past, the Internal Revenue Service reminds all taxpayers that there is no secret way to find out when a refund will be issued.

IRS unveils "Dirty Dozen" list of tax scams for 2020; Americans urged to be vigilant to these threats during the pandemic and its aftermath

IR-2020-160, July 16, 2020 — The Internal Revenue Service today announced its annual "Dirty Dozen" list of tax scams with a special emphasis on aggressive and evolving schemes related to coronavirus tax relief, including Economic Impact Payments.

Partnership form being redesigned for 2021

The IRS proposes modifying the partnership form (Form 1065) to help standardize the format of international tax items.

IRS announces 2021 PTIN fees for tax return preparers

IR-2020-159, July 15, 2020 — The Internal Revenue Service announced today the annual fee for 2021 that tax return preparers must pay to apply for or renew their Preparer Tax Identification Number (PTIN).

IRS is sending letters to those experiencing a delay with advance payment of employer credits

IR-2020-158, July 15, 2020 — The Internal Revenue Service has started sending letters to taxpayers who have experienced a delay in the processing of their Form 7200, Advance Payment of Employer Credits Due To COVID-19.

Where’s My Refund? tool on IRS.gov takes guesswork out of when to expect refunds

IR-2020-157, July 15, 2020 — The IRS reminds taxpayers that one of the best ways to check on their refund is the Where’s My Refund? tool on the IRS website and the IRS2Go app.

Treasury and IRS release draft partnership form to provide greater clarity on international tax reporting

IR-2020-155, July 14, 2020 — The Treasury Department and the IRS today released a proposed redesigned partnership form for tax year 2021 (filing season 2022).

IRS provides additional relief for tax-exempt hospitals: Deadline for completing certain needs assessment requirements moved to Dec. 31

IR-2020-156, July 14, 2020 — Because of the burdens the COVID-19 pandemic has placed on hospitals, the Internal Revenue Service today provided additional relief to hospital organizations that must meet the Community Health Needs Assessments (CHNA) requirements.

IRS reminder: Taxpayers can get an extension to Oct. 15 to file taxes

IR-2020-153, July 14, 2020 — The Internal Revenue Service today reminds taxpayers that they have until the postponed due date of July 15, 2020, to file an extension for their 2019 federal tax return.

IRS reminder: File and pay 2019 business taxes by July 15; 2020 estimated tax also due

IR-2020-154, July 14, 2020 — The Internal Revenue Service today reminded business taxpayers that their 2019 tax returns and tax payments, as well as their first two 2020 estimated tax payments, are due on Wednesday, July 15.