Although Congress remained on recess the week of August 12, House GOP leaders continued to criticize IRS actions regarding conservative groups and Ways and Means Chairman Camp announced that he will not run for the Senate in 2014. The Service, meanwhile released regulations addressing CHNA requirements, disclosures and innocent spouse relief. In addition, guidance was issued on late S elections.
Congress
House Ways and Means Chairman Dave Camp, R-Mich., said he will not run for the U.S. Senate in 2014 to replace Sen. Carl Levin, D-Mich., who is retiring. Camp said he will focus on passing comprehensive tax reform and providing oversight of the IRS and the Patient Protection and Affordable Care Act (PPACA) (P.L. 111-148) (TAXDAY, 2013/08/19, C.1).Camp's term as chairman of Ways and Means will come to a close at the end of the 113th Congress.
House GOP leaders continued their criticism of the IRS (TAXDAY, 2013/08/15, C.1). House Oversight and Government Reform Committee Chairman Darrell Issa, R-Calif., requested copies of all work-related emails sent from IRS official Lois Lerner to her home email account since January 2008. Lerner oversaw the IRS' mishandling of applications by Tea Party groups seeking tax exempt status; however, she has refused to testify before the Oversight panel about her involvement. Camp and House Ways and Means Oversight Subcommittee Chairman Charles Boustany, R-La., sent an August 12 letter to IRS Acting Commissioner Daniel Werfel asking that the Service discontinue its practice of over-scrutinizing conservative groups.
Lawmakers should pass a balanced deficit-reduction package to replace the budget cuts enacted under the Budget Control Act of 2011 (P.L. 112-25), according to Sen. Carl Levin, D-Mich., who spoke before the Reserve Officers' Association on August 9 (TAXDAY, 2013/08/13, C.1). Levin said that one part of replacing the government-wide sequestration cuts would be legislation to end tax loopholes that allow some corporations to hide profits in offshore tax havens.
IRS
CHNA Requirements. The IRS has issued temporary and proposed regulations requiring hospital organizations liable for the excise tax under Code Sec. 4959 for failure to meet the community health needs assessment (CHNA) requirements for any tax year to file Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code (T.D. 9629; NPRM REG-115300-13; TAXDAY, 2013/08/15, I.1). An organization that is liable for the tax must file Form 4729 by the 15th day of the fifth month after the end of the organization's tax year during which the liability was incurred.
Late S Elections. A new revenue procedure was issued that provides requirements to be met for relief for taxpayers that make late S corporation elections, electing small business trust (ESBT) elections, qualified subchapter S trust (QSST) elections, qualified subchapter S subsidiary (QSub) elections, and late corporate classification elections that the taxpayer intended to take effect on the same date that the taxpayer intended that an S corporation election for the entity should take effect (Rev. Proc. 2013-30; TAXDAY, 2013/08/15, I.2).
Code Sec. 6103(l)(21) Disclosures. The IRS has issued final regulations relating to the disclosure of return information under Code Sec. 6103(l)(21), as enacted by the PPACA and the Health Care and Education Reconciliation Act of 2010 (P.L. 111-152), which largely adopt the proposed regulations released in 2012 (NPRM REG-119632-11). The final regulations will facilitate information needed for PPACA marketplaces to determine an individual's eligibility for the Code Sec. 36B credit and cost-sharing reductions (T.D. 9628; TAXDAY, 2013/08/14, I.1).
Statistics for 2011. The IRS announced the availability of the Statistics of Income—2011, Individual Income Tax Returns (Publication 1304). This bulletin features individual income tax return data for tax year 2011 (IR-2013-67 ; TAXDAY, 2013/08/14, I.3). The report, which is based on a sample drawn from the 145.4-million individual income tax returns filed for tax year 2011, provides estimates of sources of income, adjusted gross income, exemptions, deductions, taxable income, income tax, modified income tax, tax credits, self-employment tax and tax payments.
August 30 Furlough Day. The IRS has postponed its planned furlough day scheduled for August 30, reporting that it had created savings in other ways (IR-2013-68; TAXDAY, 2013/08/14, I.4). In September, the IRS will evaluate whether another furlough day will be needed before the fiscal year ends on September 30.
Innocent Spouse Relief. Proposed amendments were issued to the rules governing when and how to request innocent spouse relief under Code Sec. 6015 and relief from federal tax liability resulting from the operation of state community property laws under Code Sec. 66 (NPRM REG-132251-11; TAXDAY, 2013/08/13, I.1. The regulations are proposed to revise Reg. §1.6015-5(a), reflecting the time and manner for requesting spouse to elect the application of Code Sec. 6015(b) or (c) or request equitable relief under Code Sec. 6015(f) .
Political Organizations. The IRS has made available to the public filings made in July by political organizations organized under Code Sec. 527 (TAXDAY, 2013/08/13, I.2). The IRS previously removed public access to the database because it became aware that a large number of Social Security numbers had been improperly included by these organizations in some of their filings.
DA/EAR Retirement. The IRS announced on its website that it is delaying the planned retirement of its Disclosure Authorization (DA) and Electronic Account Resolution (EAR) until September 2, 2013 (TAXDAY, 2013/08/12, I.3). The IRS had previously announced it would retire and remove these two applications effective August 11, 2013.
By Stephen K. Cooper and Jennifer J. Rodibaugh, CCH News Staff
Sent from Rebecca Parrott Tatum, CPA's iPhone
No comments:
Post a Comment