Federal Tax Update Podcast

This week we look at:

• Proposed Inflation Reduction Act of 2022 - will it pass and what’s in it?
• Taxpayer told by court suit is being dismissed, must file 2020 income tax return to obtain economic impact payment not previously sent to taxpayer
• IRS Security Summit warns tax pros about significant security threats to taxpayer data in their systems

Copyright 2022, Kaplan, Inc.

This week we look at:

• IRS wants preparers to advise clients to opt-in to IP-PIN program.
• TAM holds that an activity that is treated as a material participation activity for five straight years under SPA test will be a material participation activity under the 5/10 test in year 6
• Breadwinner not granted innocent spouse relief when she failed to inquire about or review return prepared by accountant spouse

Copyright 2022, Kaplan, Inc.

This week we look at:

• Reconciliation bill talks stall in Congress
• Taxpayer loses on charitable contribution deduction due to failure to give entire interest and lacking proper acknowledgment for donation to donor advised fund
• Taxpayer not allowed to shorten statute for collections based on shortcomings in own OIC filings
• No reasonable cause for failure to report distribution when 1099-R sent to wrong address

Copyright 2022, Kaplan, Inc.

This week we look at:

• Discussions start up again for reconciliation bill.
• IRS extends automatic late portability election relief to five years
• Federal tax lien attached to payments being made to seller’s former spouse for alimony by business buyer
• No reasonable cause for late payment and late filing

Copyright, Kaplan, Inc.

This week we look at:

• Taxpayer Advocate Service begins accepting referrals on 2021 and earlier original & amended returns from Congressional offices
• Car dealer had more than “some” guarantee of right to retain cash deposits
• Fifth Circuit rules that substantial compliance on charitable donations cannot be sufficient for failure to follow the statute, as opposed to regulations

This week we look at:

• Senate Finance Committee takes action on retirement bill
• IRS and National Taxpayer Advocate release information on processing paper tax returns
• Supreme Court to take on case involving computing FBAR penalties
• IRS adds voice bot support for some ACS issues

This week we look at:

• Foreclosure proceeds could have paid interest on second mortgage, but taxpayer unable to show it was so applied

• Nurse allowed deduction for comfortable and professional clothing

• Innocent spouse relief not available for trust fund penalty liability

Copyright 2022, Kaplan, Inc.

This week we look at:

• IRS increases mileage rates effective July 1, 2022
• Taxpayer unsuccessfully asks for relief for failing to file Form 3115

• AICPA letter on Section 174 guidance from the IRS - TCJA changes
• Form 7203 - impact on tax season and dealing with lack of basis records

Copyright 2022, Kaplan, Inc.

• Taxpayer discovers her documentation for a charitable contributions did not meet the IRC requirements
• IRS rules an enterprise involved in retail drug sales is a qualified trade or business under IRC §1202

Copyright 2022, Kaplan, Inc.