IMRS Monthly Overview – April 2013
The IMRS Monthly Overview provides synopses of some of the issues received and/or closed by the Issue Management Resolution System staff during the past month. The Monthly Overview informs the public about the work of IMRS and highlights issues that we think would be of most interest to external stakeholders. When the Monthly Overview is posted to IRS.gov, a tweet goes out to Twitter followers of @IRStaxpros. Please sign up if you would like to be notified.
RECENTLY CLOSED ISSUES
Policy, Practice, Procedures
IMRS Issue 12-0001712 – Interest assessment on return filed by registered domestic partner in accordance with Chief Counsel Advice 201021050
Issue: A registered domestic partner who did not have an original filing requirement filed a return in accordance with CCA 201021050 to claim 50 percent of her partner's income and withholding, resulting in a balance due that was paid with the return. The IRS charged interest on the balance due. The taxpayer had no requirement to file a 2008 tax return, and all tax due was paid at the time the tax return was filed. Should interest be assessed or only accrue on any unpaid tax subsequent to the date of filing?
Response: Interest is statutory in nature, with no provisions for abatement due to reasonable cause. If the practitioner or taxpayer believes the facts support an abatement of interest under the law, then the correct avenue is for the taxpayer to file a claim for refund for the interest. The Service will evaluate the claim for abatement of interest. If the claim is disallowed, the taxpayer will still have appeal rights.
IMRS Issue 13-0001747 - Tax treatment of federally issued loans on casualty loss deduction in disaster situations
Issue: If an individual receives a loan from the Small Business Administration for the full amount of losses incurred as a result of a federally declared disaster, does this preclude the claiming of a casualty loss deduction?
Response: A low-interest disaster loan from the SBA loan must be repaid and therefore does not reduce the casualty loss amount. However, amounts of the loan, if any, which are cancelled or forgiven are included in gross income in the year of cancellation. Additionally, insurance or other reimbursements received that are not required to be repaid will reduce the casualty loss. Additional information on this issue as well as other aspects of federal disaster relief efforts can be found on the IRS website. See Frequently Asked Questions under the category of SBA loans.
IMRS Issue 13-0001775 – Notices to taxpayers that appear to be from the IRS
Issue: Tax professionals in several states reported that their clients received “Notices of Tax Lien Investigation“ by mail that appear to be from the IRS. The notices offer to settle their accounts or request immediate contact to discuss lien filing on their accounts.
Response: The IRS does not mail (or fax) notices with this title. This information was referred to the Treasury Inspector General for Tax Administration. The allegations described constitute potential criminal violations of United States Code, Title 18, and are within the criminal investigative jurisdiction of TIGTA, Office of Investigations. All information of this type should be immediately referred to TIGTA using one of the methods below:
Remember: if you submit your complaint via the online form or email, it is possible - though unlikely - that others could read it since the Internet is not secure.
By phone, call toll free: (800) 366-4484
By fax: (202) 927-7018
Treasury Inspector General for Tax Administration
P.O. Box 589
Ben Franklin Station
Washington, DC 20044-0589
If you receive an email claiming to be from the IRS that contains a request for personal information, forward the full original email to us at firstname.lastname@example.org. For more information about what to do if you receive a suspicious IRS-related communication, search “phishing” on IRS.gov.
NOTE: Current and previous reports are also available on this site. The monthly overviews are posted for the prior two years through the current month. You can also access reports for issues closed in prior years on the same page. We invite you to raise your issues/concerns with your local stakeholder liaison.