Provided by Drake Software

AICPA Asks IRS for Clarification on Virtual Currency

The Internal Revenue Service recently issued their guidelines as far as how Bitcoin and the other virtual currencies fit into the scheme of the American tax structure. But the American Institute of CPAs (AICPA) still has plenty of questions about how this new form of money should be treated for tax purposes. [Read more…]

2016 Foreign Tax Issues – Part I

The following is a two-part series by regular Taxing Subjects contributor Ben Tallman, who provides insight into foreign tax issues. Part I describes Foreign Bank Account Reporting (FBAR) and FATCA in detail, while Part II discusses the foreign earned income exclusion and provides three examples of how to determine the residence requirement. [Read more…]

Remind Clients Not to Jeopardize Premium Tax Credit Advance Payments

If you have clients who filed for an extension of time to file their 2015 returns, and they receive advance payments of the premium tax credit, those taxpayers should file their income tax return sooner rather than later. [Read more…]

Audit Finds Some Amended Returns Going Unchecked for Fraud

When taxpayers file an amended income tax return, it’s up to the Internal Revenue Service to review that return before it can be accepted. If the amended return includes a refund or a claim of less tax due, that review takes on a bigger role in order to head off possible fraud. [Read more…]

Texas Flood Victims Get Relief from IRS

The Internal Revenue Service is granting tax relief for taxpayers in southern and central Texas after record-breaking May storms left a dozen counties under water. [Read more…]

IRS Announces Winners for First-Ever Crowd-Sourcing Competition

The IRS has spent much of 2015 and 2016 reaching out to taxpayers, whether through the security summit resulting in the “Taxes. Security. Together.” initiative or the Taxpayer Advocate Forums encouraging dialogue from taxpayers and tax professionals. This outreach is perhaps best represented by the recent Tax Design Challenge – the IRS’s first ever crowd-sourcing competition. [Read more…]

“False Positives” on 1042-S Spur IRS to Action for Foreign Students

A recently completed review by the IRS shows some foreign students have difficulty getting a refund of the withholding tax they reported on Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding. So the Internal Revenue Service is working to remedy the situation. [Read more…]

Military Tax Strategies

As we watch the evening news, we see our fighting men and women of the Armed Forces in combat areas far from home.  The reports can fill us with a myriad of emotions, like patriotism, compassion, empathy for the families, and a desire to give back in some way.  Many of us in this industry can show our gratitude by offering discounted or free returns to thank individuals personally for their dedication and commitment to this country.  So let’s change gears and slow down to ask the question, “How up-to-date is your ‘intel’ on the tax breaks for those in the military and especially for those in a combat zone?”  Until recently, I depended on my software to help by checking the boxes labeled active duty and combat zone.  I felt there might be more, so I pushed forward and found some things you might find interesting. [Read more…]

Study finds Uber, Airbnb are Costing U.S. Taxpayers Billions in Unpaid Tax

A new study by an independent tax policy group says the hottest thing in self-employment is sliding billions of dollars under the radar of the IRS. [Read more…]

IRS Unveils Application Process for Certified Professional Employer Organization Program

If your firm handles payroll administration as well as tax reporting for your business clients, you may be interested in becoming a Certified Professional Employer Organization (CPEO) through the Internal Revenue Service. [Read more…]