CCH Tax Day Report
Congress remains in recess until after the November elections. The Treasury Inspector General for Tax Administration (TIGTA) released several reports, including one on the IRS’s handling of the individual mandate and the premium assistance tax credit. The IRS issued guidance for partnerships and reminded taxpayers about new rules for Individual Taxpayer Identification Numbers (ITINs).
House. GOP members of the House Ways and Means Committee have sent a letter to Treasury Secretary Jack Lew voicing concerns about proposed Code Sec. 385 regulations published in April (NPRM REG-108060-15, I.R.B. 2016-17, 636) (TAXDAY, 2016/10/06, C.1).
Legislation was introduced in the House to extend the alternative fuel and alternative fuel mixture credits set to expire after December 31 (TAXDAY, 2016/10/06, C.2). The incentives were extended by the Protecting Americans from Tax Hikes (PATH) Act of 2015 (P.L. 114-113)
PPACA. The IRS effectively established controls and procedures for collecting delinquent individual shared responsibility payments and excess advance Code Sec. 36B premium assistance tax credit repayments, TIGTA reported (Ref. No. 2016-33-071; TAXDAY, 2016/10/06, T.1). The Patient Protection and Affordable Care Act (PPACA) (P.L. 111-148) generally requires individuals to have minimum essential health insurance coverage, unless exempt.
IRS Personnel. TIGTA has reviewed the IRS’s information security management practices for its employees and contractors (Ref. No. 2016-2R-079; TAXDAY, 2016/10/07, T.1). TIGTA reported that the Service had established policy and practices for implementing the use of Personal Identity Verification (PIV) cards for its employees and contractors.
Cybersecurity. TIGTA has examined some of the IRS’s new processes and procedures to beef-up cybersecurity (Ref. No. 2016-20-062; TAXDAY, 2016/10/07, T.2). TIGTA recommended that the Service continue to make improvements and advancements in identification of identity theft when returns are processed and before fraudulent refunds are issued.
Partnerships. The IRS has issued final, temporary and proposed regulations on partnership disguised sales and allocations of excess nonrecourse liabilities (T.D. 9787, T.D. 9788, NPRM REG-122855-15; TAXDAY, 2016/10/05, I.1). NPRM REG-119305-11, I.R.B. 2014-8, 524, is partially withdrawn.
ITINs. The IRS has reminded taxpayers of new rules for Individual Taxpayer Identification Numbers (ITINs) (IR-2016-129; TAXDAY, 2016/10/07, I.1). The PATH Act revised the rules for ITINs.
Research Tax Credit. The IRS has released final regulations governing the credit for increasing research activities with respect to computer software for internal use (T.D. 9786; TAXDAY, 2016/10/04, I.2). The regulations modify and adopt NPRM REG-153656-03, I.R.B. 2015-5, 566.
Disaster Relief. The IRS has announced that victims of Hurricane Hermine in parts of Florida may qualify for certain relief (FL-2016-19; TAXDAY, 2016/10/04, I.1). The Service postponed various deadlines for taxpayers who reside or have a business in the disaster area.
The IRS also reminded taxpayers to prepare for natural disasters (IR-2016-128; TAXDAY, 2016/10/06, I.6). The Service emphasized making disaster plans ahead of time.
By Jessica Jeane and George L. Yaksick, Jr., Wolters Kluwer News Staff