Federal Tax Update Podcast

This week we look at the following items:

• IRS issues SIFL rates for second half of 2018

• Information letter discusses more issues with the SALT workaround regulations

• Business meals will remain 50% deductible despite TCJA law changes

• ECPRS program updated by the IRS Market discount not subject to TCJA revenue conformity rule

• §457 plan not required to offer hurricane relief distributions

Copyright 2018, Kaplan, Inc.

This week we look at the following items:

• Wall Street Journal reports IRS will issue guidance allowing 50% deduction for business meals

• IRS issues guidance on credit for paying employees on FMLA leave

• Moving expenses incurred in 2017 but reimbursed in 2018 ruled to be excludable from the employee’s income

• Special per diem rules, including high/low amounts, updated by the IRS

• IRS agent found to qualify as an innocent spouse when given what turned out to be a misleading response by soon to be ex-spouse

Copyright 2018, Kaplan, Inc.

This week we look at the following items:

• Tax Court allows a taxpayer to try and prove reasonable reliance on indirect legal advice

• Updated safe harbor explanations for plan distributions issued by IRS

• IRS delays major revision to Form W-4 to 2020

• Relief announced for victims of Hurricane Florence

Copyright 2018, Kaplan, Inc.

This week we look at the following items:

• South Dakota enacts remote seller law to implement Wayfair decision beginning November 30

• Colorado tests the limits of Justice Kennedy’s holdings in Wayfair

• Even though records were imperfect, Tax Court finds the taxpayer was a real estate professional

• Opportunity Zone regulations at OMB, expected out around the end of the month

• IRS rules math error procedures can be used even after refunds are issued

Copyright 2018, Kaplan, Inc.

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.