Federal Tax Update Podcast

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.

Copyright 2018 Kaplan Inc.

This week we look at the following items:

• Colorado reports disappointing results from tattletale use tax law
• Oklahoma enacts a second tattletale use tax law
• IRS grants relief for last minute change in HSA maximum contribution amount for 2018
• Volunteers who divided amounts in tip jar at end of shift received tips subject to FICA
• Taxpayer who failed to check and find return was never accepted held liable for late filing penalty

Copyright 2018 Kaplan Inc.

This week we look at the following items:

• IRS computer system failure ends up adding one extra day to tax season
• The Supreme Court heard oral arguments in the Wayfair case
• IRS gives details on blended rates to be used by fiscal year C corporations
• IRS issues the rates for valuing employer owned aircraft trips for the first half of 2018
• The IRS clarifies how the repeal of the special alimony trust provision in TCJA will work
• The AICPA asks the IRS to reconsider its position on refunds of overpayments for those with remaining 965 transition tax installments

Copyright 2018 Kaplan Inc.

This week we look at the following developments:

• Supreme Court will shortly hear oral arguments in Wayfair case
• A number of states increase pressure on out of state sellers
  • Idaho requires collection at $10,000 of sale from any seller that the Supreme Court doesn’t tell us lacks nexus in Wayfair
  • Georgia adds a $200,000/200 transaction tattletale statute
  • Oklahoma puts a $10,000 tattletale statute in place that also impacts referrers
• New York passes two TJCA SALT limitation workaround statutes - but do they work?
• IRS issues guidance on three TCJA topics on Monday, including 43 pages on Section 965 transition tax

Copyright 2018, Kaplan, Inc.

This week we look at the following items:

• Accountant by day, goaltender by night in Chicago
• IRS publishes statistics on exams, collections, phone wait times and more
• IRS reminds and warns taxpayers about virtual currency issues
• IRS recommends taxpayers have a payroll checkup

Copyright 2018 Kaplan Inc.

This week we look at the following items:

• Congress passed bill to fix the grain glitch and passed partnership audit rule changes
• IRS warns of increasing attacks against tax professionals
• Series 8453 business forms must be signed manually
• Supreme Court rules on tax obstruction statute

Copyright 2018, Kaplan, Inc.

Current Federal Tax Developments for the week of March 19, 2018 - Love and the Tax Attorney. Current Federal Tax Developments is brought to you by the state CPA societies and Kaplan Professional Education.

This week we look at the following items:

• OVDP program to end on September 28, 2018
• Entire cost of having international firm prepare returns for employees sent overseas treated as wages
• Conundrum only a tax attorney could love - dealing with a sale case where the regulations don’t give guidance
• Guidance given on reporting and paying Section 965 transition tax

Copyright 2018 Kaplan Inc.