In one of the largest estate tax refund decisions in recent history, the Fifth Circuit Court of Appeals has ordered the IRS to pay more than $115 million to the estate of a south Texas family. The decision will also produce a refund of Texas inheritance tax and additional interest. Read about it here.
TSCPA’s Federal Tax Policy Committee communicated concerns to the Internal Revenue Service (IRS) on the administrative burdens new cost basis reporting requirements impose on taxpayers and tax preparers when a security is sold. Provisions enacted under the Emergency Economic Stabilization Act of 2008 shift the burden of calculating gains and losses from taxpayers to the brokers, starting with securities acquired on or after January 1, 2011. TSCPA recommends that the IRS postpone the effective date for applying the new procedures to allow brokers more time to implement new methods for capturing data to minimize Forms 1099-B inaccuracies. The Federal Tax Policy Committee also issued a letter to the IRS on interim changes to the individual taxpayer identification number (ITIN) application procedures.