Daily Tax Update - April 28, 2015: Treasury, IRS Issue Notice Regarding Refunds and Credits for Withholding

Treasury, IRS Issue Notice Regarding Refunds and Credits for Withholding:  Today, Treasury and the IRS issued Notice 2015-10, which states that Treasury and the IRS are concerned about situations in which persons subject to chapter 3 or chapter 4 withholding make claims for refunds or credits where a withholding agent has failed to deposit the amounts withheld.  According to the notice, Treasury and the IRS will issue regulations providing that a refund or credit will be allowed with respect to an overpayment of withholding tax only to the extent the relevant withholding agent has deposited the amount withheld and such amount is in excess of the claimant’s tax liability.  The regulations will also provide for a pro rata allocation of the amount available to the claimant for refund or credit when a withholding agent has partially satisfied its deposit requirements.

TIGTA Releases Report on Partnership Audits:  Today, the Treasury Inspector General for Tax Administration (TIGTA) released a report evaluating the IRS’s process for auditing partnerships.  TIGTA recommends that the IRS: (1) develop a strategy to measure the success and productivity of all partnership audits; (2) develop a system that will determine the amount of taxes assessed as a result of all partnership audits; (3) ensure that audit closing and assessment efforts are included in productivity measurements; (4) update audit report writing software to accommodate certain types of adjustments; and (5) coordinate with Treasury to assess the impact that proposed changes to the tax law would have on the IRS’s partnership audit process.

Treasury, IRS Release Third Quarter Update to Priority Guidance Plan:  Today, Treasury and the IRS released the third quarter update to the 2014-2015 priority guidance plan.  The update reflects the inclusion of 25 additional projects.  The original 2014-2015 plan, released August 26, 2014, included 317 guidance projects identified as priorities for the July 2014-June 2015 plan year.