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March 2012

February 2012

PROPOSED TANGIBLE PROPERTY REPAIR REGULATIONS

The IRS issued temporary and proposed regulations on capitalization of tangible property expenditures, also known as "repairs" regulations. The new rules, generally effective for the 2012 tax year, will affect all taxpayers that acquire, produce or improve tangible property and may result in the filing of Form 3115, Application in Change of Accounting Method.

The regulations are possibly among the most important guidance to be released in recent years because they will impact virtually all companies, big and small. Comments are due to IRS by March 26, 2012.

TSCPA's Federal Tax Policy Committee is preparing to draft a comments letter and plans to respond to the IRS. If you have any specific concerns, you may forward them to the committee for consideration by March 1, 2012, to Patty Wyatt at pwyatt@tscpa.net


IR-2011-126, REG-168745-03.


COUPLES FILING JOINT RETURNS MUST NOW FILE SEPARATE POAs

Starting March 1, 2012, the IRS will no longer accept old versions of Form 2848, Power of Attorney (POA) and Declaration of Representative, and will accept only the version released in October 2011. The revised form requires a husband and wife who filed a joint tax return to each file a separate POA on separate Forms 2848 to designate the representative he or she chooses, even if it is the same person.

http://www.irs.gov/pub/irs-pdf/i2848.pdf


NEW REPORTING FOR SPECIFIED FOREIGN FINANCIAL ASSETS

Starting with 2011 income tax returns, foreign financial assets over $50,000, unless held by a U.S. Broker, must generally be attached to Form 1040 using Form 8938. Member Joseph D. Brophy wrote an article for the January 2012 issue of the Tax Adviser summarizing the new requirements.

http://www.tscpa.org/Content/Files/pdf/Resource Center/Tax Issues Community/assorted/ForeignAsset1040 Disclosures.pdf