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August 2012

July 2012

IRS ISSUES EITC DUE DILIGENCE WARNING LETTERS

The IRS issued regulations in December 2011 that affect all earned income tax credit (EITC) claims filed by paid preparers after December 31, 2011. There are four due diligence requirements, including submission of Form 8867, Paid Preparers’ Earned Income Credit Checklist.

Last month, the IRS sent warning letters to paid preparers who did not submit Form 8867 with 2011 client returns claiming EITC. IRS did not assess penalties as a result of these letters, but placed preparers on notice that any tax year 2012 EITC returns without Form 8867 will result in a $500 penalty per violation. There is no maximum to the number of penalties IRS can impose.

 EITC Tax Preparer Toolkit http://www.eitc.irs.gov/rptoolkit/hottopicsrp/ 


TSCPA ASKS CONGRESS TO SUPPORT BILL THAT REFORMS TAX RETURN DUE DATES

TSCPA, AICPA and other state CPA societies sent letters to members of Congress, asking for co-sponsors on H.R. 2382, Tax Reform Due Date Simplification and Modernization Act. This bill will better facilitate pass-through information required of taxpayers involved in partnerships when filing tax returns with the IRS, and create a more logical flow of information between taxed entities.
Read the Letter.


TAX PROVISIONS OF THE AFFORDABLE HEALTH CARE ACT

The U.S. Supreme Court’s decision to uphold the 2010 Health Care Act, which states that non-exempted individuals must have a minimum level of health care or pay a penalty which the court ruled, was a tax, includes a myriad of tax and tax-related provisions that are currently in effect, or will be in the near future.

Learn More

http://www.journalofaccountancy.com/News/20125972.htm