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For these full stories plus the latest tax news, visit
journalofaccountancy.com and thetaxadviser.com.

Estates can now request late portability
election relief for 5 years
The IRS extended to five years (from two) the period
in which an estate can use a simplified method (in
lieu of a letter ruling request) to obtain an extension
of time to make a deceased spousal unused exclu-
sion election.

Supreme Court to resolve FBAR penalty
rehearing en banc of the court’s decision dispute
in May in Seaview Trading, LLC, No. By agreeing to hear a Romanian-born taxpayer’s
20-72416 (9th Cir. 5/11/22), rev’g and appeal, the Supreme Court will address a circuit split
remanding T.C. Memo. 2019-122. over how to stack multiple nonwillful civil penal-
In its 2–1 decision, a panel of the ties for failure to file FinCEN Form 114, Report of
Ninth Circuit found that a copy of Foreign Bank and Financial Accounts.
Seaview’s 2001 partnership return
that it faxed to an IRS agent in 2005 AICPA recommends additional IRS
constituted the return’s filing, making backlog measures
a 2010 Final Partnership Administra- Looking ahead to next filing season, the AICPA
tive Adjustment untimely. For prior renewed its previous calls for taxpayer relief and
coverage, see “Tax Matters: IRS Agent’s prescribed administrative remedies to help the
Receipt of a Copy of LLC’s Return Service clear overages in its return and correspon-
Constitutes Its Filing, Ninth Circuit dence inventories.
Holds,” JofA, Aug. 2022.
In its petition, the government TIGTA: Delayed screening of IRS new
argued that by holding that Treasury hires risked taxpayer data
regulations are silent on the proper Temporary waiving of fingerprinting and identifica-
TOP LEFT AND BOTTOM RIGHT: IMAGES BY ILLUSTRATOR DE LA MONDE/GETTY IMAGES;
place for filing a late return, the panel’s tion procedures for new federal employees due to
majority “found a nonexistent gap in the pandemic could have allowed access to taxpayer
the … regulation.” Rather, the govern- data by individuals who were ineligible for federal
ment argued, the regulations require employment, the Treasury Inspector General for Tax
returns to be filed with the service Administration reported.
center prescribed in the relevant Pandemic-paused IRS return preparer
TOP RIGHT: IMAGE BY STUDIOSTOCKART/GETTY IMAGES 1.6031(a)-1(e)(1)). In addition, the The U.S. Government Accountability Office
IRS revenue procedure, publication,
visits could resume by video
form, or form instructions (Regs. Sec.
recommended that the IRS pilot the use of video-
petition states, the Supreme Court
has held that taxpayers must exercise
conferencing for its program singling out “high-risk”
“meticulous compliance” with all speci-
return preparers for direct compliance checks and
education with respect to refundable tax credits and
fied conditions to benefit from a statute
other client tax benefits.
of limitation (quoting Lucas v. Pilliod
Lumber Co., 281 U.S. 245, 249 (1930)).
— Paul Bonner is the JofA’s editor, tax. ■

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