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August 2012

BEST CHANCE YET FOR TAX EXTENDER BILL?

The Senate Finance Committee released text in S. 3521, the Family and Business Tax Cut Certainty Act of 2012 that passed by a bipartisan committee vote last month. The bill currently extends some of the expiring provisions like the alternative minimum tax patch, state and local sales tax deduction, teacher expense deductions, work opportunity tax credit, home mortgage insurance premiums deduction, deduction for certain higher education, the research and development tax break, and renews the wind credit.

The bill has been placed on the Senate calendar. If passed by both chambers, these provisions would pare down the number of must-pass issues Congress has to tackle during the lame duck session.

Learn More

http://www.accountingtoday.com/news/senate-releases-details-tax-extenders-legislation-63812-1.html

Legislative Text

http://www.finance.senate.gov/imo/media/doc/FINAL%20SFC%20Extenders%20Markup.pdf

 


IRS OFFERS ADVICE ON IDENTITY THEFT RETURNS

The IRS Office of Chief Counsel detailed in a memo to Small Business/Self-Employed Division attorneys what the IRS can do when a return is filed by an identity thief in order to generate a fraudulent refund.

In Program Manager Technical Advice 2012-13, the IRS explained that a return filed by an identity thief is not a valid return because it is not filed by the true taxpayer or with the true taxpayer’s consent and it lacks a valid signature; a position the Office of Chief Counsel has taken previously. The Office of Chief Counsel also addressed specific issues regarding adjustments to an ID theft victim’s account, and how the IRS is not obligated to rescind a notice of deficiency.

Learn More

http://www.journalofaccountancy.com/News/20126291.htm


FEDERAL TAX POLICY COMMITTEE ISSUES LETTER TO IRS ON CONFIDENTIAL TAXPAYER INFORMATION

TSCPAs’ Federal Tax Policy Committee issued comments to the IRS on REG-119632-11, proposed regulations on disclosure of return information to carry out eligibility requirements for health insurance affordability programs. The committee is concerned about the confidentiality of taxpayer information that the IRS will share with the U.S. Department of Health and Human Services under the Patient Protection and Affordable Care Act.

It recommends that (1) HHS have safeguard procedures in place comparable to those of the IRS to assure confidentiality is maintained by HHS personnel and at the insurance exchange and independent contractor levels for all individuals and entities that have access to taxpayer information through HHS; and (2) IRS regulations make clear that criminal as well as civil penalties apply to any party or person that makes inappropriate disclosure of taxpayer information.

Read the Letter

https://www.tscpa.org/eweb/pdf/ResourceCenter/Tax/2012Letters/FedTaxCommitteeIRSreg11963211.pdf