On its Active Campaigns website, IRS LB&I has added a new compliance campaign that will examine TCJA issues. This new campaign will examine TCJA issues on a select pool of returns and then share what is learned by these examinations throughout the IRS. 

Issues could include computation of:

IRC §965 Transition Tax,

IRC §250 50% Deduction for Corporate Taxpayer's,
IRC §960 80% Deamed Paid Foreign Tax Credit and
 the IRC §962  election by an Individual to be tax
as a Corporation.

In January 2017, the IRS announced a new audit strategy for its Large Business and International Division (LB&I) known as “compliance campaigns.” With the new compliance campaigns, LB&I essentially shifted to examinations based on compliance issues that LB&I determined presented greater levels of compliance risk, thereby improving return selection. The IRS initially selected 13 compliance issues when it rolled out this strategy. (See IRS Has 13 New Compliance Campaigns for LB&I Taxpayers.)

Since the initial 13 campaign announcement, LB&I has added additional campaigns, see LB&I Has Announced the Approval of 5 Additional Compliance Campaigns (09/14/2018) and LB&I Announces Large Corporate Compliance Program (05/16/2019).

IRS LB&I has added a new The Tax Cuts and Jobs Act (TCJA) campaign on its website

Practice Area: Enterprise Activities
Lead Executive: Nikole Flax
Point of Contact: Monique Gabel

The Tax Cuts and Jobs Act (TCJA) was signed into law on December 22, 2017. Taxpayers have filed returns for 2017 and 2018 and are in the process of preparing and filing 2019 returns.

In 2020, the majority of returns that will be under review by LB&I will be returns reflecting changes brought about by TCJA; and in light of that, LB&I has initiated the TCJA Campaign to closely monitor issues on a select pool of returns and share information learned throughout LB&I and the IRS.

LB&I is also considering the impact of the Coronavirus Aid, Relief and Economic Security (CARES) Act on these returns as well as any others examined. The goal of this campaign is to identify transactions, restructuring and technical issues and better understand taxpayer behavior under the new law.

The treatment streams for this campaign may include examinations, soft letters, outreach, new and improved practice units and development of future issue-based campaigns.

Have an International Tax Problem?

 Contact the Tax Lawyers at
Marini & Associates, P.A. 

for a FREE Tax HELP Contact us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243) 

 

Read more at: Tax Times blog

In e-News for Tax Professionals, the IRS has reminded taxpayers that July 1 marks the closing of several business payment P.O. Boxes (also known as Lockbox addresses), in the Cincinnati and Hartford areas. Payments will be returned to sender. No forwarding service will be offered.

IRS first made this announcement in January 2020. See IRS will be closing some P.O. boxes in July; won't forward checks.

IRS instructs taxpayers and tax professionals that, to help ensure timely receipt, they should check IRS's Where to File website before mailing tax payments.

 Contact the Tax Lawyers at
Marini & Associates, P.A. 

for a FREE Tax HELP Contact us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243) 

Read more at: Tax Times blog

A foreign entity has been granted time to elect as a corporation for federal tax purposes, the Internal Revenue Service said in PLR 202024010 released June 12, 2020.

The information submitted states that X was formed as an entity under the laws of Country on Date 1. X represents that, as a foreign eligible entity, X was able to elect to be treated as a corporation effective Date 2. However, X inadvertently failed to timely file Form 8832, Entity Classification Election, electing to treat X as a corporation effective Date 2.

Section 301.9100-1(c) provides that the Commissioner may grant a reasonable extension of time to make a regulatory election, or a statutory election (but no more than 6 months except in the case of a taxpayer who is abroad), under all subtitles of the Internal Revenue Code except subtitles E, G, H, and I. Section 301.9100-1(b) defines the term “regulatory election” as an election whose due date is prescribed by a regulation published in the Federal Register or a revenue ruling, revenue procedure, notice, or announcement published in the Internal Revenue Bulletin.

Under § 301.9100-3, a request for relief will be granted when the taxpayer provides evidence to establish to the satisfaction of the Commissioner that (1) the taxpayer acted reasonably and in good faith, and (2) granting relief will not prejudice the interests of the government.

Based solely on the information submitted and the representations made, the IRS concluded that the requirements of § 301.9100-3 have been satisfied. As a result, X is granted an extension of time of 120 days from the date of this letter to file a Form 8832 with the appropriate service center to elect to be classified as an association treated as a corporation for federal tax purposes effective Date 2. A copy of this letter should be attached to the Form 8832 filed for X.

This ruling is contingent on the owners of X filing within 120 days of this letter all required returns and amended returns for all open years consistent with the requested relief. These returns may include, but are not limited to, the following forms: (i) Forms 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, (ii) Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, and (iii) Forms 8858, Information Return of U.S. Persons With Respect to

Disregarded Entities, such that these forms reflect the consequences of the relief granted in this letter. A copy of this letter should be attached to any such returns. 

Have an International Tax Problem?

 Contact the Tax Lawyers at
Marini & Associates, P.A. 

for a FREE Tax HELP Contact us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243) 

Read more at: Tax Times blog

In a memo, the IRS has provided interim guidance regarding accepting Freedom of Information Act (FOIA) requests from third parties that provide valid authentication documents but do not contain signatures on the actual FOIA request.

This memorandum issues Disclosure policy on accepting third-party FOIA requests without signatures, under certain circumstances, until IRM 11.3.13, Disclosure of Official Information, Freedom of Information Act, is updated. This policy applies to all Disclosure caseworkers who process IRS FOIA requests.

This Interim Guidance (IG) provides an update for accepting FOIA requests from third parties that provide valid authentication documents, but do not contain signatures on the actual FOIA request, per 26 CFR § 601.702(c)(4)(i)(A). FOIA requests for records requiring specific protections by statute (i.e. tax records protected under 26 USC § 6103) currently require the signature of the requester to verify against an ID, notarized statement or penalty of perjury statement. 

Third-party requests must contain appropriate authorization documents (i.e. Form 2848, Power of Attorney and Declaration of Representative) which already contain legal penalty of perjury agreements and signatures. Therefore, IRS accepts the signature applied to the authorization document as having met the signature requirement of 26 CFR § 601.702(c)(4)(i)(A) as long as the authorization meets the requirements of 26 CFR § 601.702(c)(5)(iii)(C).

The following note will be added to IRM 11.3.13.3(4):

Note: If a request is received from a third party, seeking records protected by specific statutes (i.e. IRC §6103 protected tax records), regardless of the method the request was received such as mail/fax or the FOIA online portal, and the request contains

1) A signature of the requesting individual, which meets the requirement of 26 CFR § 601.702(c)(4)(i)(A) and

2) The handwritten signature of the appropriate individual or business that the protected records pertain to, which meets the requirement of 26 CFR § 601.702(c)(5)(iii)(C)

Then IRS accepts the signatures applied to the authorization document as having met the IRS FOIA signature requirement. Do not imperfect third-party requests which meet these requirements unless the request is also missing information required to perfect a FOIA request per 26 CFR § 601.702 and as shown below in IRM 11.3.13.3(4)(b) through (g).

Effect on Other Documents: This guidance will be incorporated into IRM 11.3.13, Disclosure of Official Information, Freedom of Information Act (FOIA) by July 31, 2020. Effective Date: May 5, 2020.

Have a Tax Problem?

Contact the Tax Lawyers at
Marini & Associates, P.A.  

 

for a FREE Tax HELP Contact us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888-8TaxAid

 

Read more at: Tax Times blog