Federal Tax Update Podcast

This week we look at:

• Tax Court finds they have no authority to review the IRS notice for certification of seriously delinquent tax debt to State Department
• IRS publishes warning signs for employers to use to identify ERC scams
• Fourth Circuit finds that Section 7502 fully supplants common law mailbox rule for filing documents

This week we look at:

• Supreme Court rules in favor of IRS on issue of when notice must be sent when the IRS issues a third-party summons
• IRS agent gets distracted by small issues, fails to investigate potentially much larger one and it costs the IRS at Tax Court
• IRS announces 2024 HSA and excepted benefit HRA inflation adjusted amounts

This week we look at:

• IRS email discusses issues that arise with payroll tax refunds when a PEO is involved who itself has unpaid tax liabilities
• Letter ruling provides that Forms 1099-C must be filed by a credit union due to writing off certain debts as part of a legal settlement
• IRS plans to add more detail to partnership K-1 liability disclosures on 2023 returns

This week we look at:

• IRS issues CCA making clear how strict the §125 substantiation rules are
• Taxpayer’s lack of documentation forces him to accept preparer’s gross gambling winnings and limits his gambling loss deduction
• Tax Courts finds that last second rule for filing a Tax Court petition is not the same as for returns filed via eFile

Copyright, Kaplan, Inc.

This week we look at:

• Another taxpayer fails to establish either spouse as a real estate professional
• SPIFF was not a separate trade or business
• IRS releases revised Form 3115
• IRS letter to Senator on PEOs and ERC
• FinCEN publishes FAQ on Corporate Transparency Act reporting

Copyright, Kaplan, Inc.

This week we look at:

• IRS announces non-acquiescence in Tax Court case on taxpayer asserting substance over form
• IRS highlights bad tax advice on social media
• IRS rules that assets held in intentionally defective grantor trust do not obtain date of death basis
• IRS releases proposed battery regulations for new EV credits

Copyright, Kaplan, Inc.

This week we look at:

• IRS begins 2023’s Dirty Dozen Tax Scams with problematical ERC refund claims
• IRS announces position on evaluating when a non-fungible token is a collectible
• C corporation not allowed to take home office expenses for owner-employee’s home
• IRS email reminder that BBA opt-outs must be made on original returns

This week we look at:

• Trust that was meant to be a CRAT found not to be one and attempted fix was too late and not undertaken correctly
• PLR looked at whether item for consumption by infant to reduce risk of developing a condition was all or partially a medical expense
• IRS produces FAQ on whether different types of health expenses qualify as medical expenses

This week we look at:

• IRS and OPR issue separate warnings on ERC claims
• Ninth Circuit reverses Seaview Holdings LLC decision after en banc hearing, partnership return not forwarded to Ogden was never filed
• IRS gives financial institutions RMD notice relief
• S corporation accidentally ended its status by revising its LLC operating agreement

This week we look at:

• Deposit and use by sheriff of jail meal money not found to be a mere misunderstanding
• Amounts taxpayer expected to repay with future earnings found not to be loans, taxable upon receipt
• SCOTUS rules non-willful FBAR failure is a per-form not per-account penalty
• CPA fails to provide substantiation for deductions for practice

This week we look at:

• Proposed regulations issued for retirement plan forfeitures
• OIRA completes review of crypto broker proposed regulations, expected to be issued shortly
• IRS extends relief for taxpayers impacted by disasters in California, Alabama and Georgia
• IRS issues final business electronic filing mandate regulations

This week we look at

• IRS announces program to accept upload of documents in response to some, but not all, notices to taxpayers
• SECURE 2.0 Section 603 drafting glitch puts catch-up contributions at risk for 2024 as various parties push to get a fix
• IRS will not automatically challenge §199A deduction for cannabis businesses-but W-2 wage problems may get in the way

This week we look at:

• IRS relents to pressure, releases guidance on state payment programs’ taxability (generally it’s good news)
• IRS begins offering direct deposit for Form 1040-X electronic filers - but it will still take a long time to process
• No substantive §174 guidance likely before initial tax deadlines (March & April)
• Form 4868 didn’t qualify as informal claim for refund

This week we look at:

• IRS revises classification of clean vehicles for purposes of determining vehicles subject to $80,000 MSRP limit
• Proposed revenue procedure published to establish new voluntary tip reporting procedure
• Taxpayer’s log of every mile of vehicle use had issues that prevented Tax Court from accepting it for meeting burden under IRC §274(d)

This week we look at:

• IRS begins accepting 2022 income tax returns 
• IRS opens up IRIS portal for electronic filing of information returns
• Corporation forced to get private letter ruling on S election due to failure to obtain all required consents

This week we look at:

• IRS provides an extended due date for some in Alabama and Georgia impacted by storms
• IRS announces 10 minute response time on Practitioner Priority Line
• Taxpayer’s §401(k) distribution not excluded from income based on diabetes diagnosis
• IRS releases auto depreciation limits under §280F for 2023

This week we look at:

• IRS begins accepting returns on January 23
• California taxpayers get due dates delayed until May 15
• Amended return research credit additional information requirements added to draft Form 6765 instructions
• Employer provided housing not excluded from income under §119
• No loss allowed on not quite worthless not really stablecoin
• Appraisals required for donation of cryptocurrency

This week we look at issues that arise with S corporations.

Congress passed the SECURE 2.0 Act of 2022 that was signed into law on December 29, 2022. This program gives a brief overview of the provisions of this Act that will help tax professionals advise their clients about the impacts and opportunities found in this law.

This week we look at:

• IRS to issue regulations for definitions for new clean vehicle credit
• List published on IRS website to assist in determining if a vehicle could qualify for new clean vehicle credit
• Incremental cost safe harbors for §45W commercial clean vehicle credit issued by IRS
• 2023 mileage rates release
• Final 2022 Schedule K-2 and K-3 Form 1065 instructions released

This week we look at:

• Congress passes spending bill which included SECURE 2.0 Act of 2022
• Final Schedules K-2 and K-3 instructions issued for Form 1120S
• IRS delays digital asset reporting until regulations are issued
• Expanded Form 1099-K reporting delayed for one year by the IRS

Copyright 2022, Kaplan, Inc.

This week we look at:

IRS memorandum looks at marketed program to defer recognition of legal fees

Automatic change of accounting method procedure released by the IRS

IRS publishes news release on upcoming FICA/SE tax 2020 deferral payment due date

This week we look at:

• IRS releases second draft of instructions for preparing 2022 Schedules K-2 and K-3 for partnerships and S corporations
• IRS begins issuing proposed regulations to deal with court losses on method used to add listed transactions not following the Administrative Procedures Act

Copyright 2022, Kaplan, Inc.

This week we look at:

• IRA 2022 prevailing wage and apprenticeship requirement guidance issued by the IRS
• Taxpayers denied partnership loss due to a large number of issues, many of which were enough standing alone to deny the loss entirely 

Copyright 2022, Kaplan, Inc.

This week we look at:

• Damage award found to not be for physical injuries, entire amount taxable
• Partnership language in LLC operating agreement revision terminated S corporation status (creating a C corporation)
• Taxpayer failed to wait required 6 months for IRS to act on refund claim before filing suit

Copyright 2022, Kaplan, Inc.

This week we look at:

• IRS news releases this week on:
  • Qualified charitable distributions
  • Seventh Annual National Tax Security Awareness Week

Copyright, Kaplan, Inc.

This week we look at:

• Tax Court finds that adding to listed transactions requires IRS to comply with Administrative Procedures Act
• Election results and likely tax actions in lame duck session
• What about next year with the new Congress?

Copyright 2022, Kaplan, Inc.

This week we look at:

• IRS releases Form 1120-S Schedule K-2 and K-3 draft instructions with similar exceptions to Form 1065 version
• IRS gives some indication on when §174 guidance will come out
• Tax benefits alone not enough to establish taxpayer had a profit motive in solar lens leasing business
• IRS grants late rollover relief to victim of fraud

Copyright 2022, Kaplan Inc.

This week we look at:

• It’s PTIN renewal time again and the IRS has released a news release announcing the fact
• IRS publishes draft 2022 Form 1065 Schedules K-2 and K-3 instructions with revised exceptions to filing Schedules K-2 and K-3

Copyright Kaplan, Inc.

This week we look at:

• IRS announces and appears to roll out pilot program to block automated calling systems
• 2023 inflation adjusted general tax amounts released by the IRS
• Retirement/IRA limitations released for 2023

Copyright, Kaplan, Inc.

This week we look at

• AICPA writes the IRS again on issues with PTET taxes
• SECURE Act Proposed Regulations RMD rules for inherited accounts in pay status effective date delayed
• IRS releases S corporation relief guidance
• AICPA Tax Section fact sheet on the employee retention credit

Copyright 2022, Kaplan, Inc.

This week we look at:

• FinCEN releases final regulations that will require beneficial owner reporting for small LLCs and corporations
• IRS updates FAQ for state and local fiscal recovery funds used for home purchases
• Hurricane Ian relief announced by Treasury, delays most filings to February 15, 2022

Copyright Kaplan, Inc.

This week we look at:

• IRS issues reminder on penalty relief deadline that makes some modifications
• IRS publishes another news release pushing the CCA on improper PPP loan forgiveness

Copyright Kaplan, Inc.

This week we look at:

• IRS memorandum states that PPP loan forgiveness is taxable if taxpayer did not actually qualify for forgiveness granted
• AICPA adds to items requested for additional penalty relief under Notice 2022-36

Copyright, Kaplan, Inc.

This week we look at:

• Chair and Ranking Member of the Senate Finance Committee send Enhancing American Retirement Now (EARN) Act to the Senate floor
• IRS inadvertently makes Form 990-T data on non-§501(c)(3) organizations available for bulk download
• Reasonable cause for failure to file/pay does not include common financial challenges

This week we look at:

• Trust terms mean estate gets no deduction for marital or charitable contribution for specified payment value
• IRS provides for broad penalty relief for certain returns from 2019 to 2020
• National Taxpayer Advocate publishes blog post explaining IRS penalty relief

Copyright Kaplan, Inc.

This week we look at

• Inflation Reduction Act of 2022 signed into law on August 16, 2022
• Information on electric vehicle for 2022 released by Treasury, IRS and Department of Energy
• Outline electric vehicle credit for remainder of 2022 and 2023 changes
• IRS releases sample Written Information Security Plan (WISP) for tax professionals

The House and Senate pass the Inflation Adjustment Act of 2022 and we look at some key provisions:

• Increase in funding at the IRS
• Continuation of 2021-2022 Premium Tax Credit Rules
• Tax credits on clean energy vehicles
• Expansion & extension of residential energy credits
• Credit transfer provisions

Copyright, Kaplan, Inc.

This week we look at:

• IRA 2022 passes the Senate with revisions, House to take it up this week and may vote on Friday
• Inflation adjusted premium tax credit percentages released
• IRS revises questions on digital assets on Form 1040 for 2022
• $51 million payment was not deductible alimony
• IRS finalizes removal of signature requirement on §754 election

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.

This week we look at:

• Physician’s payments are found not to be deductible alimony under pre-TCJA divorce agreement
• IRS announces option for employer leave-based donation programs related to aid for Ukraine
• IRS extends, likely for the final time. option to remotely sign certain plan documents

Copyright 2022, Kaplan, Inc.

This week we look at:

• Special rules under IRC §104 for military disability and retirement income
• Expenses claimed as management fees treated as distributions to owners
• Proposed regulations to limit use of certain techniques for use of anti-clawback rules
• It’s going to be a longer than expected wait to file K-2/K-3 for S corporations via MeF

Copyright 2022, Kaplan, Inc.

• Tax rules for no-additional cost services
• SCOTUS refuses to hear challenge to SALT cap
• IRS finally grants election/accounting method relief for retroactive 2019 changes
• Rules for a real estate professional
• IRS expands on Schedules K-2 and K-3 FAQs on April 11

Copyright 2022, Kaplan, Inc.

• IRS Suspends Mailing More Notices - This Time Related to Exempt Organizations
• Tax Court Affirms IRS Denial of Interest Abatement
• Securing a Strong Retirement Act Passes House Overwhelmingly
• Above the Line Classroom Teacher’s Deductions Increases to $300 in 2022

Copyright Kaplan, Inc.

This week we look at:

• IRS releases revised depreciation limits for 2022 for autos under IRC §280F
• Lawmakers send yet another letter to the IRS regarding stopping the sending of notices
• Farmer/fisherman estimated tax payment relief formalized in an IRS Notice

Copyright 2022, Kaplan, Inc.

This week we look at:

• Department of Labor warns §401(k) plan administrators regarding offer digital asset investment options
• No deduction allowed to corporation for paying tuition for training program for boyfriend of 100% shareholders’ daughter
• IRS announces program to deal with the backlog of returns and correspondence

This week we look at:

• IRS looks to increase EA user fees by over 100%
• Justice Department files motion to have staking case dismissed as moot
• IRS to grant relief to certain farmers and fisherman impacted by inability of some tax software to file Form 7203 by March 1

This week we look at:

• Proposed regulations on required minimum distributions
• AICPA and state societies letter on delay for K-2 and K-3 filings
• Data entry error did not provide reasonable cause for tax understatement

Copyright 2022, Kaplan, Inc.

This week we look at the IRS's newly issued 2021 Schedule K-2 and K-3 filing relief. How much does the option added in Question 15 of the newly released FAQ on K-2 and K-3 issues really help partnerships and S corporations? Who does and doesn't qualify for this relief? And what about 2022 and future years?

Copyright 2022, Kaplan, Inc.

This week we look at:

• IRS adds more information on research credit claims issues
• LB&I announces new partner basis campaign
• IRS expands list of notices being temporarily suspended
• K-2 and K-3 filing issues being addressed by vendors, IRS defends process

Copyright, Kaplan, Inc.

This week we look at:

• Continuing saga of the K-2 and K-3 filing issues, including an extreme delay in accepting them electronically.
• Consider interim filing method to electronically file these returns
• OPR Director announces that IRS plans to add features to TaxPro site by mid-summer, additional features added for following year.
• OPR Director also notes that Treasury has finished reviewing the revisions to Circular 230

Copyright 2022, Kaplan, Inc.

• This week we look at: IRS revises instructions for Schedule K-2 and K-3 and points taxpayers to fact more may need to file this than might have thought they would
• IRS stops issuing one (and just one) automated notice, complains about issues blocking doing more
• AICPA issues statement critical of IRS statement on giving relief, wants all Tax Professionals United for Taxpayer Relief Coalition recommendations adopted

Copyright 2022, Kaplan, Inc.

This week we look at

• IRS issues updated substantially equal payment guidance
• Final version of basis reporting form for S corporation shareholders issued by IRS
• IRS clarifies how to report expenses used to obtain PPP forgiveness on Schedule M-2
• IRS completes guidance on reporting options for timing of PPP loan forgiveness income recognition

Copyright 2022, Kaplan, Inc.

This week we look at:

• Form 1024 joins Form 1023 in becoming online only filings
• Pressure builds on the IRS to pause automated notices in light of inability to handle correspondence on notices already issued
• IRS announces beginning of filing season along with other information for the season

Get updates as they are written up on our website at http://www.currentfederaltaxdevelopments.com

Copyright 2022, Kaplan, Inc.

This week we look at:

• IRS publishes detail on changes for amended returns and research credits
• Taxpayers do not have to pay in tax IRS undercomputed when adjusting for unemployment compensation
• Expenses used for PPP loan forgiveness do not reduce AAA for S corporations per IRS instructions
• Information letter addresses when industry accountant becomes a paid preparer

Copyright 2022, Kaplan, Inc.

This week we look at:

• IRS quietly revises Ida relief revision
• Reagan-era regulations on conservation easements found to be invalid by Eleventh Circuit
• IRS objects to attempt to use 7 month old valuation for GRAT
• Taxpayer fails at attempt to use a deposit in collection case
• Deadline arrives for taxpayers who deferred FICA/SECA to make first of two installment payments

Copyright 2022, Kaplan Financial Education

This week we look at:

• IRS/Malta look to shut down promoted tax shelter
• Lenders instructed not to issue Forms 1099C on discharges of student loans
• 469 rental definition does not apply to self-employment income rules
• IRS to issue letters on advance child tax credit and third economic impact payment
• Hurricane Ida relief extended to February 15

Copyright 2021, Kaplan Financial Education

This week we look at:

• BBBA fails to clear Congress before adjourning for the year and Senator Manchin states he is a no vote on this bill
• Mileage rates released by the IRS
• IRS updates automatic changes for small business accounting methods added by TCJA
• IRS publishes, with minimal changes, annual disclosure Revenue Procedure

Copyright 2021, Kaplan, Inc.

This week we look at:

• BBBA process continues but no Senate text yet available
• Taxpayer discovers she needs to report K-1 income in year of divorce
• IRS gives guidance for retroactive changes to 4th quarter ERC
• IRS grants relief to certain partnerships filing short year returns related to Schedules K2 & K3

Copyright 2021, Kaplan Financial Education

This week we look at:

• Tacit consent given for filing of joint tax return
• “Money number” adjustments related to partnership items give rise to positive imputed adjustment
• Entity type, not exempt vs. taxable status, is the key factor in determining if partner is an eligible partner for BBA opt out

Copyright 2021, Kaplan, Inc.

This week we look at:

• IRS modifies 2021 Form 1065 draft instructions to add self-employment income information
• IRS issues preliminary guidance on late repeal of Q4 ERC for most employers
• Training to begin for agents for ERC audits in early 2022
• Rejection of return due to suspected identity theft did not mean return was not filed before statute expired

Copyright 2021, Kaplan Financial Education

This week we look at:

• IRS modifies 2021 Form 1065 draft instructions to add self-employment income information
• IRS issues preliminary guidance on late repeal of Q4 ERC for most employers
• Training to begin for agents for ERC audits in early 2022
• Rejection of return due to suspected identity theft did not mean return was not filed before statute expired

Copyright 2021, Kaplan Financial Education

This week we look at:

• House passes BBBA, but not clear what the Senate will do
• IRS clarifies 2021-2022 treatment of meals and incidentals per diem
• Self-directed IRA implodes on taxpayer due to find that assets were held personally and commingled with other assets
• IRS gives guidance on timing of PPP forgiveness income, as well as very short term BBA partnership amended return relief

Copyright 2021, Kaplan, Inc.

This week we look at:

• TAS will not intervene in amended return delayed processing cases
• Inflation adjusted amounts released for 2022
• Taxpayer denied in request to make late §475(f)(1) election to mark to market as a trader

Copyright 2021, Kaplan Financial Education

This week we look at:

• IRS announces retirement plan inflation adjusted numbers for 2022
• Congress passes Infrastructure Investment and Jobs Act, sent to President for signature

Copyright 2021, Kaplan, Inc.

This week we look at:

• IRS announces retirement plan inflation adjusted numbers for 2022
• Congress passes Infrastructure Investment and Jobs Act, sent to President for signature

Copyright 2021, Kaplan, Inc.

This week we look at

• The Build Back Better Act draft’s tax provisions (some)

• What’s not in the bill

• Individual provisions

• Corporate provisions

Copyright 2021, Kaplan, Inc.

This week we look up:

• More talking but no action in DC on pending legislation 
• Rehiring retired employees discussed in IRS FAQ
• Appeals panel agrees that claim of right doctrine did not apply to grantor trust stock sale
• IRS issues formal draft of S corporation basis reporting form

Copyright 2021, Kaplan, Inc.

This week we look at:

• Two weeks later, Congress is still working on the infrastructure and reconciliation bills
• IRS outlines information requirements for §41 refund claims
• Taxpayer is not getting impermissible double benefit for paying alimony with pre-tax funds
• COBRA extension dates clarified by IRS
• IRS publishes documents regarding reliance on FAQs

Copyright 2021, Kaplan, Inc.

This week we look at:

• Congress is still working on the infrastructure and reconciliation bills
• We get the Tax Court on record for the proper treatment of hobby loss deductions-that is, where they are reported
• IRS to begin charging a fee on October 28 to issue closing letters to estates

Copyright 2021, Kaplan, Inc.

This week we look at:

• Congress is still working on the infrastructure and reconciliation bills
• We get the Tax Court on record for the proper treatment of hobby loss deductions-that is, where they are reported
• IRS to begin charging a fee on October 28 to issue closing letters to estates

Copyright 2021, Kaplan, Inc.

This week we look at:

• Taxpayer has issues with auto expenses, retirement plan contributions and demolition expenses in Tax Court
• Buy-sell agreement that wasn’t followed and was a found as a way to transfer business to brother as a way to escape transfer tax not followed by District Court

Copyright 2021, Kaplan Financial Education

This week we look at:

• Ways and Means Committee finishes markup of proposed new tax bill.
• Language of legal settlement made all of the settlement amount taxable to taxpayer regardless of the fact that payor likely had other reasons to settle
• Taxpayer had reasonable basis to rely upon prior case settlement even though Court found opposite results this time

Copyright 2021, Kaplan, Inc.

This week we look at:

• High low per diem and related guidance for FY 2021/2022 released
• Rules for reporting COVID-19 credit related leave on Forms W-2 for 2021
• Is the client required to amend a return? And, if so, when?

Copyright 2021, Kaplan, Inc.

This week we look at:

• High low per diem and related guidance for FY 2021/2022 released
• Rules for reporting COVID-19 credit related leave on Forms W-2 for 2021
• Is the client required to amend a return? And, if so, when?

Copyright 2021, Kaplan, Inc.

This week we look at:

• High low per diem and related guidance for FY 2021/2022 released
• Rules for reporting COVID-19 credit related leave on Forms W-2 for 2021
• Is the client required to amend a return? And, if so, when?

Copyright 2021, Kaplan, Inc.

This weeks we look at:

• IRS makes permanent its limited e-signature program initiated last year
• Unambiguous plain text in the IRC vs. Congressional intent: how that impacts tax research and professional responsibilities

This week we look at:

• Looking for a trade or business is not itself a trade or business.
• IRS describes a harsh result for taxpayers that make a late deposit of deferred CARES Act FICA

This week we look at:

• Safe harbor guidance for PPP forgiveness and certain grants for reduction in revenue test for ERC
• Auto depreciation limits announced for 2021
• Taxpayers barred from producing evidence letter with no postmark applied was placed in mail by due date by US Court of Claims, even though the Tax Court allows such evidence

Copyright 2021, Kaplan, Inc.

This week we look at:

• This week we look at: IRS issues ERC guidance for 3rd/4th quarter and adds to other guidance - confirms issue for majority shareholders IRS memorandum pushes
• IRS position regarding conservation easement extinguishment clauses
• Best-selling author loses her appeal of Tax Court decision regarding her attempt to split off most of her publishing contract income from self-employment tax

Copyright 2021, Kaplan, Inc.

This week we look at:

• What we know about tax matters in the bipartisan infrastructure bill
• SBA announces direct forgiveness application platform, more PPP changes
• Taxpayer allowed a deduction for expenses related to MBA program
• Paid leave credit expanded to cover more vaccine related issues
• BBA CPAR email notes issues with imputed adjustment calculation
• Second Circuit overturns foreign trust penalty decision in favor of IRS

Copyright 2021, Kaplan, Inc.

This week's sermon is given by Pastor Paul Nelson

The reading for this week is Ephesians 3:14-21.

The Gospel for this week is Mark 6:30-34, 53-56.

Prince of Peace Lutheran Church is located at 3641 N. 56th Street, just north of Indian School Road on 56th Street in Arcadia. For more information about Prince of Peace, visit our website at http://www.popphoenix.org.

This week we look at:

• Taxpayer fails in attempt to use Cohan rule to obtain deductions
• IRS proposes Form 7203 to use by shareholders to report basis in S corporation
• IRS can consider potential recovery against executor as part of offer in compromise
• IRS opens up site for full electronic submission and signing of Forms 2848 and 8821

Copyright 2021, Kaplan, Inc.

This week we look at:

• AICPA reports lenders told to stop pre-forgiveness necessity inquiries
• Digitally signed amended return rejected as not properly filed
• No reasonable cause for late filing when taxpayer depended on attorney who simply took tax money
• IRS position not substantially justified for basis challenge and overall accounting method

Copyright 2021, Kaplan, Inc.

This week we look at:

• TAS declines to accept stand-along advance child tax credit cases
• IRS agent’s tax home remained at his assigned office
• FSA participants required to document qualification of expenses paid with debit card
• IRS explanation of why Forms 1099R don’t identify QCDs
• IRS discusses legal expense deductions

Copyright 2021, Kaplan, Inc.

This week we look at:

• IRS extends special treatment of employee leave donation for COVID-19 relief
• Guidance published on making farm NOL elections
• Penalty relief for issues with 2021 Forms K-2 and K-3
• Supreme Court turns down hearing dispute over taxing out of state employees

Copyright 2021, Kaplan, Inc.

This week we look at:

• SBA reported to be withdrawing PPP loan questionnaires
• Court finds not clear if taxpayer qualifies for home gain exclusion due to unforeseen circumstances
• IRS extends special remote witnessing of signing plan documents through June 30, 2022, may make it permanent
• CPA’s conviction for assisting in the filing of false returns upheld - rejected "I just used what the client gave me" defense

Supreme Court finds no status for challenging ACA due to TCJA changes

IRS backlog was huge at May 1 which causes two pieces of guidance to be issued:

• Do not file Form 990-EZ on paper (unless you want problems)
• Offer in compromise program changes put in place due to backlog

Copyright 2021, Kaplan, Inc.

This week we look at:

• IRS publishes Q & A on 2021’s enhanced child and dependent care credit on website
• Malpractice settlement related to taxpayer’s divorce was taxable to her - and situation made worse to going to Tax Court
• IRS discusses interaction of depreciation related §481(a) adjustments and computation of ATI through 2021

Copyright 2021, Kaplan Financial Education

This week we look at:

• Senate Parliamentarian’s second opinion on reconciliation limits practical use of revision of reconciliation instructions

• Long-time tax CPA who admits not reading Schedule B instructions hit with willful failure to file FBAR penalties

• MoneyGram is not a bank, meaning losses from 2008 financial crisis secured debts were capital losses

Copyright 2021, Kaplan, Inc.

This week we look at:

• Green Book issued to explain administration’s revenue proposals
• Whether or not a 1099 must be issued, income still must be reported
• IRS gives more information about unemployment exclusion and community property states
• TAM looks at lack of “fact of the liability” for all events test dispute

Copyright 2021, Kaplan, Inc.