January 12, 2012
Posted January 12, 2012
Read the Full Newsletter
In this Issue:
IRS Directs Quick Implementation of Payroll Tax Cut
Employers should implement the just-passed two-month extension of the employee-side payroll tax cut as soon as possible, the IRS has instructed. The Temporary Payroll Tax Cut Continuation Act of 2011 extends the employee-side payroll tax cut through the end of February 2012.
IRS Issues Comprehensive Repair and Capitalization Regulations
Just before the New Year, the IRS released much-anticipated temporary and proposed regulations on the capitalization of tangible property, which are intended to clarify and expand existing standards for capitalization of specific expenses associated with tangible property, and provide bright-line tests for applying the standards.
Individual Exams Down Slightly in FY 2011
Examinations of individual taxpayers declined slightly in fiscal year 2011 compared to FY 2010, according to the IRS Deputy Commissioner for Services and Enforcement. The IRS also reports it is aggressively combating identity theft.
