Federal Tax Update Podcast

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.

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.

This week we look at the following items:

• IRS releases a new “postcard” dratt for Form 1040 along with 6 schedules
• CPA who advised on ESOP and prepared 5500s was still found to be an independent appraiser on third time to court
• IRS publishes the list of qualified opportunity zones under TCJA’s Section 1400Z-1
• A amendment of a return with fraudulent positions does not reduce the fraud penalty
• Taxpayer discovers IRS had not agreed to waive all penalties when taxpayer agreed to exam changes

Copyright 2018 Kaplan Inc.

Copyright 2018 Kaplan Professional Education

Copyright 2018 Kaplan Professional Education

This week we look at the following items:

• Updated timeline for some TCJA guidance
• Court accepted father’s testimony for where son lived during tax year
• Dad denied deduction for payments related to revenue collected for son who lacked a general contractor’s license
• The IRS grants some relief for §965 transition tax payments
• Memo deals with confusion that arose due to special meaning certain words have in a tax context

Copyright 2018 Kaplan Professional Education

This week we look at the following items:

• Fact sheet on how the IRS contacts taxpayers--and how it doesn’t
• Ruling issued on how funds sent to state under abandoned property laws is treated for withholding and reporting purposes
• Taxpayer was found to be a statutory employee, deductions allowed above the line
• IRS issues proposed regulations that would increase number of taxpayers that must electronically file all information returns

Copyright 2018 Kaplan Inc.

This week we look at the following items:

• FBAR penalty limited to lower amount in old regulation
• Taxpayer had not started a business yet, so no current deduction allowed for expenses incurred
• IRS to issue regulations on SALT/charity workarounds, raises substance over form issue
• DC Circuit agrees with Ninth Circuit that partnerships with disregarded entity partners are subject to TEFRA (and presumably subject to CPAR) audits

Copyright 2018 Kaplan Inc.

This week we look at the following items:

• Update on TCJA guidance from the ABA Tax Section Meeting
• Tax due on tuition waiver received as part of severance package when used by daughter 22 years later
• Connecticut becomes the next state to adopt SALT workarounds
• IRS updates revenue procedure for use of information on status of charity
• Taxpayer reliance on advice from one adviser could not be in good faith and received no advice from other

Copyright 2018 Kaplan Inc.

This week we look at the following items:

• Taxpayer had to include son’s savings account in determination of solvency
• 2019 HRA amounts announced by the IRS
• IRS changes Section 382 recognized built-in gain/loss safe harbors due to changes made by TCJA
• Revenue procedure issued to deal with requests to change accounting methods due to ASC 606 adoption for financial statements
• General automatic method change revenue procedure annual update published by IRS
• Taxpayer found to have no asset to sell and, due to that, income was ordinary and not capital in nature

Copyright 2018 Kaplan Inc.