Tax practitioners should be familiar with the special rules that apply and issues that can arise when an accounting method change is made while a taxpayer is under IRS examination.
Representations & Examinations
Building not a certified historic structure
The Tax Court denied deduction of a qualified conservation contribution of a faΓ§ade easement, noting the building lacked a required listing in the National Register of Historic Places.
FTR notification requirement for taxpayers under LB&I examination
A foreign tax redetermination may require taxpayers under Large Business and International Division examination to notify the IRS, which will redetermine the U.S. tax owed.
LLC validly elected into BBA partnership examination regime
To make a valid election into the Bipartisan Budget Actβs audit procedures, the IRS could not require the taxpayer to establish, as opposed to represent, that it had sufficient assets to pay any imputed underpayment, the Tax Court held.
IRS increases corporate aircraft exams
These examinations may focus on qualification for bonus depreciation, substantiation of business use, and employee income imputation and deduction disallowance for personal use of aircraft.
Erroneous refund of interest does not support innocent-spouse relief
Taxpayer not entitled to equitable innocent-spouse relief for erroneous refund of interest.
Responding to an IRS information document request
Responding wisely to an IRS information document request and its potentially expansive scope can help clients successfully weather an examination.
Spouseβs actual signature not necessary on joint return and extension forms
Married taxpayers filed a joint return and validly executed extensions of time for assessment, even though one spouse did not actually sign the return and the extension documents.
TIGTA questions LB&I audit inefficiencies
A recent TIGTA audit found that the LB&I division actually conducted the greatest number of its audits on individual taxpayers.
Supreme Court rejects challenge to notice exception for IRS summonses
Notice exception applies to IRS summons even if the taxpayer does not have a legal interest in the accounts or records summoned.
The IRM and more: A valuable resource
By being thoroughly familiar with the Internal Revenue Manual, tax practitioners can better provide tax services and representation.
Managing tax audits using sampling techniques
This article explores how adjustments in a tax audit using sampling can be overstated by the choice of statistical method and offers practical recommendations.
Considerations for IRS examinations of ERC claims
With an extended examination period for the employee retention credit and repeated IRS warnings of promoted schemes, practitioners and their clients should take care to document and support credit claims.
Ninth Circuit again addresses return filing
Faxing a return copy to an IRS agent or mailing it to an IRS attorney is not βfilingβ the return.
The QAR: Handle with care
A qualified amended return can allow taxpayers to avoid certain penalties, but only in closely circumscribed circumstances.
Nonresident alien partnerβs gain on inventory items sourced to US
Nonresident alienβs Sec. 751 gain on sale of partnership interest was sourced to United States.
Newly released IRS Data Book numbers confirm decline in audit rates
A number of factors have led to a decline in IRS examinations over the past few years, and a dearth of IRS examiners could cause that trend to continue.
IRS audit rates decreased most for wealthy, GAO finds
In a study, the US Government Accountability Office finds that the Internal Revenue Serviceβs individual tax audit rates decreased by 72% during 2010β2019, and by a greater percentage for higher-income taxpayers than for lower-income ones.
Definition of βimmediate supervisorβ clarified for penalty purposes
The immediate supervisor who must approve IRS penalties is the person who directly supervises the work of the examining agent in an examination.
Tax Court blows the whistle on whistleblower claim
A whistleblower is not entitled to an award where information provided did not directly result in the tax collected by the IRS.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.