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IRS

GAO Offers IRS Some Advice on FATCA Start-up

Tammy Whitehouse May 22, 2012

Responding to the wailing over efforts to collect tax on offshore holdings, the Government Accountability Office has recommended some ideas to the Internal Revenue Service on how to implement the Foreign Account Tax Compliance Act.

Preparing for W-2 Healthcare Cost Reporting

Tammy Whitehouse February 14, 2012

Come next tax season, companies that issue more than 250 W-2 forms will be required to report on that form how much they spent on each employee's health coverage. Despite the looming deadline, companies are still somewhat baffled by the exercise. "We hear from our clients: 'I don't really understand what the point of this is,'" says Ben Lupin, director of compliance at Corporate Synergies Group.

Treasury, IRS Unveil Latest Plan for FATCA Phase-in

Tammy Whitehouse February 10, 2012

The U.S. Treasury and the Internal Revenue Service unveiled a nearly 400-page proposed regulation on the Foreign Account Tax Compliance Act that spells out their plan for how to assure the United States can collect taxes due on U.S. funds held in overseas accounts, and they're signing on key European countries to participate and cooperate. More details inside.

Tax Staff Puzzled by New IRS Repair Regulations

Tammy Whitehouse February 08, 2012

Companies are struggling to get their arms around new regulations from the Internal Revenue Service on when to expense or capitalize a host of repair and improvement costs. So far, they aren't even certain whether compliance will result in generally positive or negative tax results. Details inside.

Foreign Banks, Others Struggle to Prepare FATCA Compliance

Reese Darragh January 17, 2012

As the 2013 deadline nears for foreign banks and others to strike a deal with the Internal Revenue Service to monitor accounts held by U.S. citizens, confusion remains about exactly which companies must comply with the law. "Until companies really pull up their sleeves and take a hard look at all the necessary changes, they won't realize the impact," says Laurie Hatten-Boyd, a principal at KPMG.

IRS Offers Employers a Worker Classification Do-Over

Reese Darragh October 11, 2011

A new volunteer program gives companies a chance to fix worker classification issues and get a break on back taxes, with no fines or interest. But that doesn't mean companies will get full amnesty for classification problems. In fact, the Labor Department is pursuing cases vigorously. "Misclassification is like sitting on a ticking time bomb. The faster employers resolve the issue, the better it will be for them," says Keith Reinfeld of law firm Fox Rothschild.

IRS Gives Relief on Worker Classifications, Mobile Phones

Tammy Whitehouse September 29, 2011

As part of its "fresh start" initiative, the Internal Revenue Service is offering companies amnesty to fix worker classification issues and get a break on unpaid payroll tax obligations. Taxpayers accepted into the Voluntary Classification Settlement Program will pay no interest or penalties. The IRS is also providing relief on the tax treatment of company-issued mobile phones.

Preparing for Health Insurance Reporting Requirements

Reese Darragh September 20, 2011

The Internal Revenue Service is delaying new reporting requirements of the Patient Protection and Affordable Care Act until 2013. That's when companies will have to begin reporting their spending on healthcare for each individual on the employee's W2 form. If it sounds simple, it's not. Disclosure experts are advising companies to get started on the calculations now. Details inside.

IRS Issues First Schedule UTP Guidance to Tax Examiners

Tammy Whitehouse September 19, 2011

The Internal Revenue Service has rolled out guidance on how examiners should use Schedule UTP disclosures on uncertain tax positions. The IRS developed the requirement to make it faster and easier to get to core issues in tax returns that deserve more attention. A five-year phase-in for the new filing began for tax year 2010.

IRS Teaming Up With Overseas Tax Authorities on Joint Audits

Tammy Whitehouse August 30, 2011

With complex, cross-border taxable transactions on the rise, the Internal Revenue Service is looking to counterparts in foreign tax jurisdictions to team up on audits. The project, still in its early phase, hopes to resolve multinational tax issues more quickly and efficiently. "Joint audits are an effort by the tax authorities to mirror what the companies are doing," says Mike Patton, a partner at the law firm DLA Piper.

IRS Gives Guidance on Economic Substance Doctrine

Tammy Whitehouse August 09, 2011

The Internal Revenue Service has issued some internal guidance on the dreaded economic substance doctrine—the policy that bars taxpayers from claiming benefits for transactions they pursue for tax purposes alone. The directive suggests examiners will have to see some pretty ugly evidence before they are likely raise a red flag on any given transaction.

IRS Gives Long Lead Time for FATCA Compliance

Tammy Whitehouse August 01, 2011

The Internal Revenue Service will give foreign financial institutions and U.S. withholding agents until June 2013 to implement various requirements of the Foreign Account Tax Compliance Act. The law requires them to report information on foreign accounts held by U.S. taxpayers or by foreign entities substantially owned by U.S. taxpayers.

IRS Answers Latest Questions on Schedule UTP

Tammy Whitehouse July 22, 2011

The Internal Revenue Service is offering some new guidance for completing the new Schedule UTP, answering some of the questions that have most vexed companies as they prepare their tax returns.

IRS Limits Scope of Sec. 162(m) Deductions

Jaclyn Jaeger July 12, 2011

The IRS has proposed changes to the rules on what deductions companies can take for spending on executive compensation, which clarify the requirements for deducting performance-based pay and what types of plans qualify. "It's a potential trap for the unwary if you continue to move along and don't at least check to make sure you're in compliance," says Ben Wells, a partner with law firm Dinsmore & Shohl.

IRS Moving Toward Preemptive Tax Administration

Tammy Whitehouse May 17, 2011

The Internal Revenue Service is seeking to streamline tax compliance with inducements for corporate taxpayers to settle disputes earlier and provide more transparency in their tax returns. "The pendulum is slowly swinging toward cooperation," says Bob Gordon, a partner at tax advisory firm True Partners Consulting. Details inside.

Getting a Grip on Uncertain Tax Positions Disclosure

Tammy Whitehouse March 15, 2011

Many corporate tax filers are struggling with the new "Schedule UTP," an IRS form that requires more disclosure of a company's uncertain tax positions. Tax departments have a difficult time with the notion that they're essentially expected to help the IRS do its job, says Wayne Corini, a partner with accounting firm BDO.

The SEC Moonlights as State Tax Enforcer

Tammy Whitehouse February 08, 2011

The SEC may be struggling with a crush of rulemaking for the Dodd-Frank Act, but it still took the time recently to ding a company for sloppy compliance with state tax laws, an area normally outside the SEC's interests. Details inside.

Executives Still Jittery Over Schedule UTP Requirements

Tammy Whitehouse October 26, 2010

The Internal Revenue Service may have eased up on its call for details about shaky tax positions, but senior executives are jittery about the new requirement nonetheless.In a recent poll of 1,100 business leaders by KPMG’s Tax Governance Institute, nearly half said they’re worried about a new schedule added to...

Deadline for W-2 Reporting Of Healthcare Costs Delayed

Melissa Aguilar October 22, 2010

Good news for employers grappling with healthcare reforms under the Patient Protection and Affordable Care Act: The mandate for employers to report the cost of coverage under their group health plans in 2011 has been delayed.The Internal Revenue Service has made the W-2 reporting requirement optional for 2011 in order...

IRS Finalizes Uncertain Tax Disclosures, With Concessions

Tammy Whitehouse October 01, 2010

The Internal Revenue Service has finalized its requirement for companies to tell tax authorities where it may have some weak spots in its tax return—and it’s not quite as draconian as companies originally feared.The reporting requirement fulfills IRS goals for cutting to the chase on where there are issues to...

IRS Formalizes Proposal on Uncertain Tax Positions

Tammy Whitehouse April 23, 2010

The Internal Revenue Service has published its proposed schedule and proposed instructions for how companies will be required to report where they have uncertain positions in their corporate tax returns.In IRS Announcement 2010-30, the IRS says any corporate taxpayer, including insurance companies, with both uncertain tax positions and assets of $10...

IRS Extends Timeframe for Uncertain Tax Disclosures

Tammy Whitehouse March 16, 2010

Following a flurry of feedback to a planned disclosure requirement regarding uncertain tax positions, the Internal Revenue Service is stepping back, further developing the proposal, and extending the comment period for it.That will give companies more time to digest and comment on the IRS plan to require disclosure of uncertain...

IRS Launches Detailed Audits Targeting Employment Tax

Tammy Whitehouse March 09, 2010

The Internal Revenue Service is launching a comprehensive study built around an exhaustive audit program to determine how fully—or not—companies are complying with employment tax reporting and payment obligations, most notably payroll taxes, fringe benefits, independent contractors, expense reimbursements, and other related payroll issues.It’s the first such undertaking in 25...

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