IRS e-News for Tax Professionals -- 2010-07

The IRS has announced that a Certified Public Accountant has been suspended for twelve months from practice before the Internal Revenue Service by the Office of Professional Responsibility for providing false or misleading information in connection with the preparation of his clients’ tax returns.

2. IRS Debunks Frivolous Tax Arguments

The Internal Revenue Service has released the 2010 version of its discussion and rebuttal of many of the more common frivolous arguments made by individuals and groups that oppose compliance with federal tax laws.
Anyone who contemplates arguing on legal grounds against paying their fair share of taxes should first read the 80-page document, The Truth about Frivolous Tax Arguments.

3. IRS Seeks Members for Electronic Tax Administration Advisory Committee

The Internal Revenue Service has announced it is accepting applications to fill vacancies on the Electronic Tax Administration Advisory Committee (ETAAC), which provides feedback on the policies, programs and procedures of electronic tax administration. #

4. Watch Tax Videos on YouTube

The Internal Revenue Service makes video and audio products available to help taxpayers take full advantage of credits and deductions in the tax law. The IRS has launched a YouTube channel to better serve taxpayers. People can visit the channel. to view tax tips and how-to videos. These videos are in English, Spanish, American Sign Language and other languages.

5.Proposed New Requirements for Tax Return Preparers: Frequently Asked Questions

To help tax professionals understand issues related to the paid tax return preparer initiative, the IRS is posting related questions and answers.

6. Haiti Relief Notice Now Available

A new one-page notice, describing the option to claim Haiti relief donations on a 2009 tax return, is now available on IRS.gov. Notice 1396 is printed in English, Spanish, French and Haitian Creole. The IRS urges practitioners and community organizations to download, print and share this notice with anyone who might be interested in taking advantage of this option.

7. Technical Guidance

Notice 2010-19 applies to taxpayers making gifts in trust during 2010. Under section 2511(c), a transfer of property to a non-wholly-owned grantor trust is a transfer by gift of the entire interest in the property. To determine whether a transfer to a wholly-owned grantor trust constitutes a gift, the gift tax provisions in effect prior to 2010 apply.

Notice 2010-20 provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code. It also provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), the 24-month average segment rates, and the funding transitional segment rates under § 430(h)(2). In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, and the minimum present value segment rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007.

Revenue Procedure 2010-15 updates Rev. Proc. 2008-14, 2008-1, C.B. 435, and identifies circumstances under which the disclosure on a taxpayer's income tax return with respect to an item or a position is adequate for purpose of reducing the understatement of income tax under section 6662(d) of the Internal Revenue Code; (relating to the substantial understatement aspect of the accuracy-related penalty), and for the purpose of avoiding the tax return preparer penalty under section 6694(a) (relating to understatements due to unreasonable positions) with respect to income tax returns.

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