Federal Tax Update Podcast

This week we look at the following items:

• South Dakota to hold a special session so the state can begin to take advantage of their victory in the Wayfair case
• Taxpayer who withdrew IRA funds based on a notice of intent to levy cannot escape 10% additional tax
• IRS clarifies the application of the proposed SALT regulations leading to a bevy of questions
• IRS memorandum concludes seismic fees for offshore drilling must be amortized and cannot be treated as intangible drilling costs
• President issues an Executive Order for DOL and Treasury to consider certain changes to retirement plans
• Tax Court disagrees with the IRS’s view on how §1291(c) gains interact with six year statute

Copyright 2018, Kaplan, Inc.

This week we look at the following items:

• Taxpayers creating multiple entities to try and avoid double taxation of C corporation income find their plan fails
• IRS issues SALT workaround regulations and affect both new and pre-existing state tax credit programs
• Modifications made to automatic accounting method revenue procedure to deal with S corporation revocations under special TCJA rule
• Guidance provided on applying the rules to compute UBTI separately for each trade or business

Copyright 2018, Kaplan, Inc.

This week we look at the following items:

• Taxpayers creating multiple entities to try and avoid double taxation of C corporation income find their plan fails
• IRS issues SALT workaround regulations and affect both new and pre-existing state tax credit programs
• Modifications made to automatic accounting method revenue procedure to deal with S corporation revocations under special TCJA rule
• Guidance provided on applying the rules to compute UBTI separately for each trade or business

Copyright 2018, Kaplan, Inc.

This week we look at the following items:

• Oregon Supreme Court rules no physical presence required to be subject to corporate income tax
• Idaho sends out notices to retailers that it’s moving forward with affiliate rule for collecting sales tax
• IRS prevails over AICPA on question of issuing credential for unenrolled tax preparers
• AICPA sends comments to the IRS and Treasury on S corporation and Section 461(l) issues following TCJA

Copyright 2018, Kaplan, Inc.

This week we look at the following items:

• Proposed regulations for 965 are issued, others on state and local tax workarounds submitted to OMB
• Majority of states that impose a sales tax now have published post-Wayfair remote seller collection requirements and start dates
• Proposed regulations on which taxpayers may rely issued on bonus depreciation
• Automatic accounting method change guidance issued for TCJA small business accounting methods
• 529 plan revised guidance to deal with TCJA and other recent changes
• Guidance issued on additional contributions allowed to ABLE accounts by TCJA changes

Copyright 2018, Kaplan, Inc.

This week we look at the following items:

• First 199A regulations are sent to OMB for review
• Minnesota tests whether lower limits than South Dakota will work under Wayfair
• Utah enacts South Dakota limits for remote sellers
• Another US District Court agrees that the IRS’s own regulations limit the FBAR willfulness penalty amount
• Taxpayer stuck with transferee liability after entering into transaction to sell corporation

Copyright 2018, Kaplan, Inc.

This week we look at the following items:

• Two state supreme courts restrict their states’ ability to tax trusts
• IRS issued PMTA on willfulness for FBAR penalty
• Forfeitures now can be used to fund QMACs and QNECs
• IRS discusses the impact on taxable wages of a payroll tax examination
• Many exempt organizations will no longer have to file Schedule B with Form 990
• Proposed regulations issued on due diligence expansion to head of household status added by TCJA

Copyright 2018 Kaplan Professional Education

This week's update includes discussions of the following topics:

• More Wayfair fallout
  • North Dakota out of state seller collections required beginning October 1
  • South Carolina to use South Dakota minimums for out of state sellers
  • Wisconsin will use the South Dakota minimums for the October 1 out of state seller start
• IRS updates security guidance for tax professionals
• Trusts and Estates will get to deduct trustee fees and other Section 67(e) expenses following TCJA
• IRS sticks to its position on prepaid real estate taxes when questioned by NJ Attorney General
• IRS employee indicates the agency accepts that the back door Roth contribution is legal

Copyright 2018, Kaplan, Inc.

This week's update includes discussions of the following topics:

• More Wayfair fallout
  • North Dakota out of state seller collections required beginning October 1
  • South Carolina to use South Dakota minimums for out of state sellers
  • Wisconsin will use the South Dakota minimums for the October 1 out of state seller start
• IRS updates security guidance for tax professionals
• Trusts and Estates will get to deduct trustee fees and other Section 67(e) expenses following TCJA
• IRS sticks to its position on prepaid real estate taxes when questioned by NJ Attorney General
• IRS employee indicates the agency accepts that the back door Roth contribution is legal

Copyright 2018, Kaplan, Inc.

This week we look at the following items:

• States take various actions regarding forcing out of state sellers to collect tax
  • Louisiana looks to adopt its law to fit within Justice Kennedy’s outline of acceptable protections for interstate commerce
  • Alabama, though not a member of SSUTA, will begin requiring collection on October 1
  • Wisconsin, an SSUTA member but without a de minimis limit, will also want collections on October 1
  • New Jersey adopts a law that duplicates South Dakota and adds marketplace provisions
• IRS LB&I Division announces five new compliance campaigns
• IRS agent wonders if a preparer penalty could be assessed directly against an equity holder who did not otherwise violate Section 6694

Copyright 2018, Kaplan, Inc.