Federal Tax Update Podcast

This week we look at:

• IRS publishes Q & A on 2021’s enhanced child and dependent care credit on website
• Malpractice settlement related to taxpayer’s divorce was taxable to her - and situation made worse to going to Tax Court
• IRS discusses interaction of depreciation related §481(a) adjustments and computation of ATI through 2021

Copyright 2021, Kaplan Financial Education

This week we look at:

• Senate Parliamentarian’s second opinion on reconciliation limits practical use of revision of reconciliation instructions

• Long-time tax CPA who admits not reading Schedule B instructions hit with willful failure to file FBAR penalties

• MoneyGram is not a bank, meaning losses from 2008 financial crisis secured debts were capital losses

Copyright 2021, Kaplan, Inc.

This week we look at:

• Green Book issued to explain administration’s revenue proposals
• Whether or not a 1099 must be issued, income still must be reported
• IRS gives more information about unemployment exclusion and community property states
• TAM looks at lack of “fact of the liability” for all events test dispute

Copyright 2021, Kaplan, Inc.

This week we look at:

• IRS will begin sending out advance child tax credit payments on July 15
• IRS announces simplified method to file a return for those not required to file to qualify for advance payments
• IRS provides Q&A on COBRA premium assistance payments

Copyright, Kaplan, Inc.

This week we look at:

• IRS begins revising returns that reported taxable unemployment and excess APTC
• HSA and HDHP numbers for 2022 released
• Census will not change the boundaries of qualified opportunity zones
• IRS looking to automate submission of power of attorney forms

Copyright 2021, Kaplan, Inc.

This week we look at:

• IRS begins revising returns that reported taxable unemployment and excess APTC
• HSA and HDHP numbers for 2022 released
• Census will not change the boundaries of qualified opportunity zones
• IRS looking to automate submission of power of attorney forms

Copyright 2021, Kaplan, Inc.

This week we look at:

• IRS looks at issues for use of an aircraft by a sole proprietor
• Dividends from controlled C corporation are still part of net investment income under IRC §1411
• IRS allowed to serve John Doe summons on Kraken exchange for information on customers

Copyright, Kaplan, Inc.

This week we look at:

• A quick discussion of what know (little) and don't know (a lot) about not yet proposed changes to capital gain rates
• IRS provides safe harbor for returns filed on or before December 27 for PPP expenses
• IRS issues fact sheet to promote paid leave/family leave payroll tax credit subsidy for vaccine issues
• Deviation allowing for electronic signatures for some forms extended again
• IRS admits to delays in MeF payment processing near April 15

Copyright 2021, Kaplan, Inc.

This week we look at:

• Cover letter from state judge was part of the divorce documents
• PLR discusses medical expense definition
• IRS announces gift tax return due date remained April 15
• Only overpayments existing at April 15 can be applied to quarter one 2021 estimate payment

Copyright 2021, Kaplan, Inc.

This week we look at:

• IRS gives guidance on ARPA and the advance premium tax credit for 2020
• CCA issued to give details on apply tax provisions to hard forks of virtual currency
• IRS disagrees with court decision on treatment of defined benefit pension benefit for insolvency
• A restaurant is defined for 100% deduction
• The saga of 2020 Form 1040 overpayments, extensions and first quarter estimates

Copyright, Kaplan, Inc.