A House subcommittee is holding a hearing Thursday on the Internal Revenue Service's recent focus on tax return preparers. Rep. Charles W. Boustany Jr., R-La., chairman of the House Ways and Means oversight subcommittee, says the hearing will be looking to see how the new regulations, such as the new category of "registered" tax return preparer, will affect taxpayers and tax compliance. Read more about the IRS's registered tax preparer program in this post by Edward Karl, CPA, AICPA vice president of taxation, on AICPA Insights.
The AICPA's vice president-taxation, Edward Karl, testified at an Internal Revenue Service hearing Friday about proposed changes to Circular 230 that would implement parts of the IRS' plan to regulate tax return preparers. The AICPA also submitted a comment letter to the IRS on the same subject on Thursday. In his testimony, Karl expressed concern about several aspects of the plan and made recommendations concerning nonsigning preparers, the plan's testing and continuing-education requirements, and other issues. Read Karl's testimony and the AICPA news release for more information.
In an announcement released on Tuesday, the IRS said it is developing a plan to require business taxpayers to annually disclose the uncertain tax positions they have taken on their tax returns, including the maximum amount of potential federal tax liability attributable to each uncertain tax position. IRS Commissioner Douglas Shulman says this will increase the efficiency of corporate audits. The IRS has requested comments on the plan.
A proposal to create a bipartisan commission to find ways to cut the U.S. budget and bring the deficit under control was defeated in the Senate. The measure was supported by a coalition of 53 senators from both parties, but under a consent agreement, 60 votes were needed.
Economists say a housing recovery could take as long as a decade. The grim outlook comes even as the market shows signs of improvement. Economists suggest the recent recovery is artificial and can be attributed to tax credits. "We're just not convinced that the housing market can stand on its own two feet without the fiscal support of the tax credit," said Paul Dales, an economist for Capital Economics.