Search Results for keywords:"tax reporting"

The Internal Revenue Service (IRS) is asking for public feedback on its information collection methods to help reduce paperwork and respondent burden, as outlined in the Paperwork Reduction Act of 1995. Specifically, the IRS is looking at procedures for combined information reporting by successor business entities after mergers or acquisitions. They are seeking comments on whether the collection is necessary, its accuracy, quality, utility, and ways to reduce burden on respondents. Feedback is welcomed until March 24, 2025, and the current information collection is set to continue without changes.

The Treasury Department and the Internal Revenue Service (IRS) have proposed new regulations that require corporations engaging in specific tax-free separations to report their transactions annually to ensure compliance with tax laws. These rules focus on Section 355 transactions, which involve the tax-free distribution of a corporation’s stock. The new regulations mandate detailed reporting to prevent tax evasion, and this must be done via a new form attached to the corporation's annual tax return over a multi-year period. The proposed changes are intended to help narrow the federal tax gap by improving the IRS's ability to track and address potential noncompliance.

The Treasury Department and Internal Revenue Service have issued final regulations addressing how certain taxpayers should report income and advance payments under an accrual method of accounting. These regulations, influenced by the Tax Cuts and Jobs Act, require that income be reported no later than when it is recorded in a taxpayer’s financial statement. The regulations also allow some taxpayers to defer reporting income from advance payments to the next taxable year, provided it matches the company's financial statement treatment. These rules aim to ensure consistency between tax reporting and financial accounting.