This past week the IRS published two new practice units titled:
- Examining Education Expenses Claimed by Nonresident Alien Individual Employees
- Form 1040NR Examination Adjustments in RGS
The first practice unit mentioned above applies only to tax years beginning before 2018 and after 2025. The Tax Cuts and Job Acts of 2017 suspended the deductibility of unreimbursed employee expenses as itemized deduction from 2018 through 2025.
The second practice unit mentioned above deals with how to use the IRS’ internal Return Generation Software (RGS) when IRS agents are dealing with Form 1040NR. The RGS application does not have a dedicated Form 1040NR module for examiners to use when examining Form 1040-NR and Form 1040-NR-EZ. RGS is designed mainly to computes tax for Form 1040, U.S. Individual Income Tax Return, Form 1120, U.S. Corporate Income Tax Return, Form 1120S, U.S. Income Tax Return for an S Corporation, and Form 1065, U.S. Return of Partnership Income.
These new practice units have been added to our Practice Units By Topic page.
(My web scraping tool also notified me that on October 26, 2021 the IRS had published a practice unit called “Identification of a U.S. Trade or business or Permanent Establishment (PE).” However, that practice unit seems to have been removed from the website. Perhaps it was prematurely published and it will be coming soon?)