Federal Tax Update Podcast

Current Federal Tax Developments for the week of November 11, 2019: Indexing Week

• Federal Circuit shoots down previously successful taxpayer argument that limited maximum FBAR penalty
• IRS publishes the 2020 inflation adjusted numbers
• Proposed regulations issued to revise the life expectancy tables for required minimum distributions
• Retirement plan numbers for 2020 issued by IRS

Copyright 2019 Kaplan, Inc.

Current Federal Tax Developments for the week of November 4, 2019 Both a Home and an Investment

• Wisconsin fails in attempt to look to sublease to tax software sales based on computers sold to be used in the state

• IRS agrees that taxpayer qualifies for both §121 and §1031 for the sale of a former home destroyed by fire

• Draft Form 1065 and K-1 instructions released by the IRS

Copyright 2019 Kaplan, Inc.

This week we look at the following:

• California rules on tax issues for directors that have meeting in California

• Chief Counsel’s office gives guidance on use of secured email exchanges

• §280E found not to represent an excessive fine even if the Tax Court doesn’t completely agree on why

• Interim guidance issued to Appeals employees on BBA partnership regime

• Whistleblower cannot force IRS to reopen an audit that he claimed was woefully inadequate

Copyright 2019 Kaplan, Inc.

Current Federal Tax Developments for the week of October 21, 2019: The Details are in Forms (and Instructions)

• Agents directed to grant relief in certain WOTC situations
• Form 1120-S instructions disclose 3 new statements to be required on K-1s for 2019
• Social security inflation adjusted 2019 numbers officially released
• Second draft of Form 1065 Schedule K-1 asks for additional information about disregarded entity partners
• TAS’s request for a delay while taxpayers facing loss of passport seek assistance denied by IRS

Copyright 2019, Kaplan, Inc.

Current Federal Tax Developments for the week of October 7, 2019: Virtual Currency and Taxes

• IRS expands IP PIN program to 10 more states

• Question on virtual currency transactions will be on Schedule 1, Form 1040 and 1040SR, along with release of more draft instructions

• Hard forks of virtual currencies are taxable events per IRS and the rule appears to apply retroactively

• Additional set of FAQs added for taxation of virtual currencies to IRS website

Copyright 2019 Kaplan, Inc.

Current Federal Tax Developments for the week of October 7, 2019

• Pennsylvania cites Wayfair in providing for sales only based income tax nexus
• Taxes on investment real estate under IRC §164 - no $10,000 limit?
• Drafts of 2019 Forms 1065, 1120-S and related K-1s released by IRS
• Proposed regulations for ALEs using individual coverage HRAs released

Copyright 2019 Kaplan, Inc.

Current Federal Tax Developments for the week of September 30, 2019: Rentals and the Safe Harbor

• IRS releases final version of §199A rental safe harbor
• Special per diem rates that take effect on October 1, 2019 released
• Tax Court does not accept imprisonment and lack of access to what might be deductible expense documentation as reasonable cause for late filing.

Copyright 2019 Kaplan, Inc.

Current Federal Tax Developments for the week of September 23, 2019: Zombie Power of Attorney

• IRS releases final and new proposed regulations on §168(k) bonus depreciation
• Settlement offer to be sent to 200 taxpayers under exam for microcaptive structures
• Government shutdown causes IRS to lose ability to extend statute taxpayer had already agreed to extend
• Power of attorney not used by son nevertheless left him authorized to act for father, barring claim for extended statute
• CPA ordered to turn over tax returns of client based on two factor test

Copyright 2019, Kaplan, Inc.

Current Federal Tax Developments for the week of September 16, 2019: §451 Week

• Students learns real life lesson on taxation of prizes, and we get a tax history lesson
• Proposed regulations issued for advance payments under TCJA §451(c)
• Proposed regulations issued for §451(b) revenue conformity added by TCJA

Copyright 2019 Kaplan, Inc.

Current Federal Tax Developments for the week of September 9, 2019: But I Promise, Really!

• IRS release instructions to 2019 §199A simple deduction form with additional informal guidance
• Memorandum discusses what does and does not qualify as having made a payment to a retirement plan
• Relief granted to file the second copy of the Form 3115 late for an automatic method change, but at a cost
• Activities failed to count as rentals, could not be combined into rental activity by real estate professional
• A flawed S election uncovered during due diligence for sale of the corporation

Copyright 2019 Kaplan, Inc.