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Form 14457, Voluntary Disclosure Practice Preclearance Request and Application Has Been Updated

The IRS has announced that Form 14457, Voluntary Disclosure Practice Preclearance Request and Application, has been revised. Form 14457 allows taxpayers who may face criminal prosecution for willful violation of tax law to voluntarily disclose information to the IRS. These updates and additions include:

Deputy Commissioner Services and Enforcement Doug O’Donnell encourages taxpayers to review the guidelines regarding the form and consult a trusted tax professional. Thousands of taxpayers have used the Voluntary Disclosure Practice since it began. It provides a compliance option for taxpayers who have potential criminal exposure. Taxpayers making such disclosure are still subject to civil examination and payment of all applicable taxes, interest, and penalties.

Taxpayers who did not commit any tax-related crimes and wish to correct mistakes should consider other options available to comply with their tax and reporting obligations. The IRS encourages taxpayers to consult with professional tax advisors to determine the best option.

A taxpayer’s voluntary disclosure must be timely, accurate, and complete. The taxpayer must cooperate with the IRS in determining the correct tax liability and make full payment of the tax, interest, and penalties. A taxpayer who is unable to make full payment may request that the IRS consider other payment arrangements. If a taxpayer anticipates they cannot pay the full amount, the taxpayer must disclose this and submit a proposed payment arrangement and a completed and executed Collection Information Statement. The burden is on the taxpayer to establish inability to pay, to the satisfaction of the IRS, based on full disclosure of all assets and income under the taxpayer’s control.

FAQs Released on Energy Efficient Home Improvements and Residential Clean Energy Property Credits, FS-2022-40

The IRS has released frequently asked questions (FAQs) about energy efficient home improvements and residential clean energy property credits. The […]

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FAQs Released on Energy Efficient Home Improvements and Residential Clean Energy Property Credits, FS-2022-40

IRS, DOL Renew Employee Misclassification Memorandum of Understanding

The Internal Revenue Service and the U.S. Department of Labor announced they have renewed a memorandum of understanding (MOU) under […]

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IRS, DOL Renew Employee Misclassification Memorandum of Understanding

Transitional Guidance on Broker Digital Asset Reporting Provided, Announcement 2023-2

The Treasury Department and IRS have announced that brokers are not required to report additional information with respect to dispositions […]

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Transitional Guidance on Broker Digital Asset Reporting Provided, Announcement 2023-2

IRS Completes Final Corrections on 2020 Unemployment Compensation Tax Payments, IR-2023-2

The IRS recently completed the final corrections of tax year 2020 accounts for taxpayers who overpaid their taxes on unemployment compensation received in 2020. […]

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IRS Completes Final Corrections on 2020 Unemployment Compensation Tax Payments, IR-2023-2

FL - Additional guidance issued on tax relief for property made uninhabitable by Hurricanes Ian or Nicole

The Florida Department of Revenue has issued additional guidance regarding property tax relief for residential properties rendered uninhabitable for 30 […]

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FL - Additional guidance issued on tax relief for property made uninhabitable by Hurricanes Ian or Nicole

IRS Reminds Taxpayers to Check Tax Withholding Now to Avoid Paying Future Quarterly Estimated Payments, FS-2023-1; IR-2023-10

The IRS reminded taxpayers who earn wages to use the Tax Withholding Estimator tool to adjust their 2023 withholding. Checking now and […]

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IRS Reminds Taxpayers to Check Tax Withholding Now to Avoid Paying Future Quarterly Estimated Payments, FS-2023-1; IR-2023-10

2023 Standard Mileage Rates Released, Notice 2023-3

The IRS released the optional standard mileage rates for 2023. Most taxpayers may use these rates to compute deductible costs […]

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2023 Standard Mileage Rates Released, Notice 2023-3

Inflation Reduction Act Triggers Numerous Tax Form Changes

The passage of the Inflation Reduction Act in 2022 has triggered changes to many tax forms, tax form instructions, and […]

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Inflation Reduction Act Triggers Numerous Tax Form Changes

FL - Taxpayer properly applied cost-of-performance rule to its income producing activities

An out of state subsidiary (taxpayer) of a nationwide online and brick-and-mortar retailer (retailer) properly sourced its service revenue under […]

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FL - Taxpayer properly applied cost-of-performance rule to its income producing activities

FL - Guidance provided on tax relief for properties made uninhabitable by Hurricanes Ian or Nicole

Florida provides guidance regarding property tax relief for residential properties rendered uninhabitable for 30 days or more due to Hurricanes […]

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FL - Guidance provided on tax relief for properties made uninhabitable by Hurricanes Ian or Nicole