IRS issues FAQs on reinstated Superfund tax

The Internal Revenue Service has issued FAQs regarding the reinstated Superfund chemical excise tax, detailing what the tax is, how it’s computed and who may be liable. The Superfund chemical taxes are reported on Form 720, “Quarterly Federal Excise Tax Return” and Form 6627, “Environmental Taxes”. The excise taxes imposed on certain chemicals and imported … Read more

IRS adds options for electronically amending 1040s

Corrections to the 1040-NR, 1040-SS (including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico) and the 1040-PR can now be e-filed, according to the Internal Revenue Service. An electronic checkbox has been added for the 1040/1040-SR, 1040-NR and 1040-SS/1040-PR to indicate that a superseding return is being e-filed. Forms 1040, 1040-NR … Read more

Taxpayer advocates sees much larger tax return backlog than IRS reported

National Taxpayer Advocate Erin Collins expressed concern Wednesday in a midyear report to Congress about continuing delays by the Internal Revenue Service in processing tax returns filed on paper last year, pointing to far higher numbers than the IRS itself claimed just a day ago. Collins said at the end of May, the agency had … Read more

In the blogs: The best policy

Partners’ pay as a retention tool; volunteering to file; the global tax debate; and other highlights from our favorite tax bloggers. The best policy Rosenberg Associates (https://rosenbergassoc.com/blog/): Here’s a thorny one: Should partners cut their comp to pay staff better? Solutions for CPA Firm Leaders (http://ritakeller.com/blog/): Recruiting is one thing, retention another — and perhaps … Read more

Supreme Court agrees to weigh fines for not reporting overseas accounts

The US Supreme Court agreed to decide how the steep penalties are for people who fail to file required reports with the federal government listing their foreign bank accounts. The justices said they will hear arguments from Alexandru Bittner, a businessman who was assessed a $2.72 million penalty for not filing timely reports for five … Read more

Tax compliance and controversies on the rise

Tax practitioners should be ready for increasing compliance and enforcement efforts by tax authorities. These abated somewhat due to the pandemic, but are now on the rise, according to observers. “The IRS and state government agencies have been ramping up attention toward controversy-related matters, such as tax collection and examinations,” said Robbin Caruso, partner and … Read more

IRS expands reliance on voice bots to boost taxpayer service

The Internal Revenue Service, facing criticism over long hold times and disconnects when taxpayers try to reach its offices, is adding more options for callers to reach automated voice bots that can respond to their requests sooner. IRS officials said Friday they have now added assistance for eligible taxpayers to set up or modify their … Read more

House committee proposes $1B funding boost for IRS

A congressional appropriations committee wants to give the Internal Revenue Service $1 billion more in funding to improve taxpayer service and technology and make the overall tax system fairer. The House Appropriations Committee released its draft fiscal year 2023 Financial Services and General Government funding bill on Tuesday, which is being considered by a subcommittee … Read more

In the blogs: Just plain fun

Taxes versus budgets; meaning of gross taxable income; new blog in town; and other highlights from our favorite tax bloggers. Just plain fun Institute on Taxation and Economic Policy (https://itep.org/category/blog/): Even as many state lawmakers cite rising prices as a major reason to cut taxes, less-noticed data offer a reminder that rising costs have the … Read more