IRS Insights - March 2009 |
Publish date:
Welcome to the bimonthly publication, IRS Insights, produced by the Deloitte Tax Controversy Services group to keep our clients abreast of current issues related to the Internal Revenue Service.
In this month's issue:
- Company’s tax accrual workpapers protected by work product privilege – Recently, the First Circuit Court of Appeals ruled that a company’s tax accrual workpapers, which were prepared by in-house attorneys, were protected by the work product privilege. Further, the Court found that the work product privilege was not waived when the work papers were shared with the independent auditors, but remanded the matter to the district court to determine whether the independent auditor’s workpapers would reveal the same information as the company’s workpapers.
- IRS not precluded from issuing summonses after issuing an FPAA – In a recent decision, a District Court denied an investment partnership’s motion to quash IRS summonses served on various partners, and held that the issuance of an FPAA within days after summonses were served did not strip the IRS of administrative jurisdiction to continue its investigation.
- Partners’ challenge of assessment statute is partnership item – In a recent decision, the Federal Circuit Court of Appeals held that the Court of Federal Claims lacked jurisdiction over a refund suit brought by individual partners because the determination of whether the IRS assessed taxes beyond the limitations period is a partnership-level challenge that cannot be maintained in a partner-level suit.
- Tax Controversy Updates: IRS provides clarification on Form 8300 issues – IRS issued additional guidance on use of Form 8300, which is an important tool in the government’s fight against money laundering and other financial crimes.
- Tax Controversy Updates: Taxpayer identification number matching program is available to persons subject to information reporting requirements under Section 6050W – IRS announced that persons who will be required to make returns under the newly enacted Section 6050W, may now match Taxpayer Identification Numbers (TINs) under the procedures established by Rev. Proc. 2003-9.
- Tax Controversy Updates: Universal Service Fund issue moved from active Tier I status to monitoring status – The IRS issued a directive to move the Universal Service Fund sub-issue within Section 118 from active Tier I issue status to monitoring status. This issue remains a Coordinated Issue.
- Tax Controversy Updates: LMSB directive on bioenergy program payments – The IRS recently issued an industry directive that provides field guidance on Section 118 abuse concerning bioenergy program payments, a Tier I issue.
- Tax Controversy Updates: LMSB directive on state and local tax incentives – The IRS recently issued an industry directive that provides field guidance on Section 118 abuse concerning state and local tax incentives.
- Tax Controversy Updates: LMSB directive on research credit claims – The IRS issued an industry directive that provides field guidance on the definition of a claim covered under the Tier I designation, the issuance of the Mandatory Research Credit Claim Information Document Request under certain circumstances, the notice of centralized filing, and the assertion of penalties under Section 6676.
- Recent Guidance: Leaking Underground Storage Tank Remediation Reimbursement Program – The IRS issued the Petroleum and Retail Industries coordinated issue paper on the Leaking Underground Storage Tank Remediation Reimbursement Program. The paper addresses the proper treatment of payments received from state financial assurance and compensation programs, as well as underground storage tank cleanup reimbursement programs.
See attached file for details.
Visit the IRS Insights Archive for issues from the past year.
IRS Insights - March 2009
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