This week we look at:

  • §199A final regulations – a pre-tax season package that had to be quickly understood
  • 2019’s year end tax bills – comes in three parts, along with a good portion of the government’s full appropriations package
  • The IRS’s fascination with tax basis capital, and the profession’s reaction to the same
  • §199A FAQ – so we’ll have fewer sub-regulatory guidance items, but that doesn’t mean it all gets reviewed like regulations. Or, perhaps, be careful what you wish for…
  • States looking to extend their tax reach, but in a case with limited application SCOTUS did find there are some limits
  • Additional items beyond the top five…

Copyright 2019, Kaplan, Inc.

Direct download: 2019-12-30_The_Years_Big_Tax_Developments.mp3
Category:general -- posted at: 3:00pm EDT

Current Federal Tax Developments for the week of December 23, 2019: A Tax Bill for the Holidays

  • Further Consolidated Appropriations Act, 2020 signed into law on December 20, 2019
    • SECURE Act
      • The good: Delay in required beginning date for plan distributions, later plan adoption date, etc.
      • The bad: Death of the stretch IRA
    • Extenders apply retroactively - so there are some amended returns that will be needed
    • Tax-exempt version of the parking lot tax is gone, but the for profit version is still around

Copyright 2019, Kaplan, Inc.

Direct download: 2019-12-23_A_Tax_Bill_for_the_Holidays.mp3
Category:general -- posted at: 1:53pm EDT

Current Federal Tax Developments for the week of December 16, 2019: The Sound of Silence

  • IRS does not have the discretion to waive repayment of advance premium credit
  • Employer who reimburses employee when transit card fails to function has to include amount in wages per CCA
  • IRS issues more proposed regulations on state tax issues and charitable contributions, but remains silent on passthrough tax issues
  • IRS grants relief from use of tax basis capital account on partnership K-1s for one year

Copyright 2019, Kaplan, Inc.

Direct download: 2019-12-16_The_Sound_of_Silence.mp3
Category:general -- posted at: 7:20pm EDT

Current Federal Tax Developments for the week of December 9, 2019: Bring in the Forms

  • Final version of 2020 Form W-4 released Final versions of 2019 Forms 1040, 1040-SR, Schedules 2 and 3 released
  • Shortly thereafter, final version of Schedule 1 released still containing question about virtual currency
  • Relief for provision of Forms 1095-B and C
  • Detailed guidance issued for IRS agents on BBA audit procedures

Copyright 2019, Kaplan, Inc.

Direct download: 2019-12-09_Bring_on_the_Forms.mp3
Category:general -- posted at: 10:18am EDT

Current Federal Tax Developments for the week of December 2, 2019: Horses and Hobbies

  • Commissioner rules that insurance payments for pyrrohite damage does not require Forms 1099
  • Horse business found not to be a hobby, losses allowed
  • IRS updates per diem rules for TCJA, following similar update for auto mileage rules

Copyright 2019, Kaplan, Inc.

Direct download: 2019-12-02_Horses_and_Hobbies.mp3
Category:general -- posted at: 9:22pm EDT

Current Federal Tax Developments for the week of December 2, 2019: Horses and Hobbies

  • Commissioner rules that insurance payments for pyrrohite damage does not require Forms 1099
  • Horse business found not to be a hobby, losses allowed
  • IRS updates per diem rules for TCJA, following similar update for auto mileage rules

Copyright 2019, Kaplan, Inc.

Direct download: 2019-12-02_Horses_and_Hobbies.mp3
Category:general -- posted at: 9:22pm EDT

Current Federal Tax Developments for the week of November 25, 2019: Back to the FAQ

  • IRS discusses information security responsibilities and risks for tax professionals
  • Rental section added to IRS’s §199A FAQ page on website
  • Final regulations issued on anti-clawback estate/gift tax provisions
  • Only one penalty applied to taxpayer that was both the owner and beneficiary of a foreign trust

Copyright 2019 Kaplan, Inc.

Direct download: 2019-11-25_Back_to_the_FAQ.mp3
Category:general -- posted at: 3:08pm EDT

Current Federal Tax Developments for the week of November 18, 2019: Upcoming Features

  • Significant TCJA guidance to be issued by end of January 2020
  • PLR allows advisory fees to be paid out of an annuity without trigger taxable income to owner
  • IRS announces enforcement program for syndicated conservation easement programs
  • IRS updates auto mileage rulings for changes made by TCJA
  • IRS found to have attempted to assess tax on Son of BOSS after all statutes had expired

Copyright 2019, Kaplan, Inc.

Direct download: 2019-11-18_Upcoming_Features.mp3
Category:general -- posted at: 2:52pm EDT

Current Federal Tax Developments for the week of November 11, 2019: Indexing Week

  • Federal Circuit shoots down previously successful taxpayer argument that limited maximum FBAR penalty
  • IRS publishes the 2020 inflation adjusted numbers
  • Proposed regulations issued to revise the life expectancy tables for required minimum distributions
  • Retirement plan numbers for 2020 issued by IRS

Copyright 2019 Kaplan, Inc.

Direct download: 2019-11-11_Indexing_Week.mp3
Category:general -- posted at: 2:06pm EDT

Current Federal Tax Developments for the week of November 4, 2019 Both a Home and an Investment

  • Wisconsin fails in attempt to look to sublease to tax software sales based on computers sold to be used in the state

  • IRS agrees that taxpayer qualifies for both §121 and §1031 for the sale of a former home destroyed by fire

  • Draft Form 1065 and K-1 instructions released by the IRS

Copyright 2019 Kaplan, Inc.

Direct download: 2019-11-04_Both_a_Home_and_an_Investment.mp3
Category:general -- posted at: 6:20pm EDT

This week we look at the following:

  • California rules on tax issues for directors that have meeting in California

  • Chief Counsel’s office gives guidance on use of secured email exchanges

  • §280E found not to represent an excessive fine even if the Tax Court doesn’t completely agree on why

  • Interim guidance issued to Appeals employees on BBA partnership regime

  • Whistleblower cannot force IRS to reopen an audit that he claimed was woefully inadequate

Copyright 2019 Kaplan, Inc.

Direct download: 2019-10-28_Denied_Deduction_Not_Excessive_Fine.mp3
Category:general -- posted at: 7:57am EDT

Current Federal Tax Developments for the week of October 21, 2019: The Details are in Forms (and Instructions)

  • Agents directed to grant relief in certain WOTC situations
  • Form 1120-S instructions disclose 3 new statements to be required on K-1s for 2019
  • Social security inflation adjusted 2019 numbers officially released
  • Second draft of Form 1065 Schedule K-1 asks for additional information about disregarded entity partners
  • TAS’s request for a delay while taxpayers facing loss of passport seek assistance denied by IRS

Copyright 2019, Kaplan, Inc.

Direct download: 2019-10-21_Its_All_in_the_Forms_and_Instructions.mp3
Category:general -- posted at: 5:05pm EDT

Current Federal Tax Developments for the week of October 7, 2019: Virtual Currency and Taxes

  • IRS expands IP PIN program to 10 more states

  • Question on virtual currency transactions will be on Schedule 1, Form 1040 and 1040SR, along with release of more draft instructions

  • Hard forks of virtual currencies are taxable events per IRS and the rule appears to apply retroactively

  • Additional set of FAQs added for taxation of virtual currencies to IRS website

Copyright 2019 Kaplan, Inc.

Direct download: 2019-10-14_Virtual_Currency_and_Taxes.mp3
Category:general -- posted at: 9:28pm EDT

Current Federal Tax Developments for the week of October 7, 2019

  • Pennsylvania cites Wayfair in providing for sales only based income tax nexus
  • Taxes on investment real estate under IRC §164 - no $10,000 limit?
  • Drafts of 2019 Forms 1065, 1120-S and related K-1s released by IRS
  • Proposed regulations for ALEs using individual coverage HRAs released

Copyright 2019 Kaplan, Inc.

Direct download: 2019-10-07_Get_Ready_for_the_2019_Passthrough_Forms.mp3
Category:general -- posted at: 11:33am EDT

Current Federal Tax Developments for the week of September 30, 2019: Rentals and the Safe Harbor

  • IRS releases final version of §199A rental safe harbor
  • Special per diem rates that take effect on October 1, 2019 released
  • Tax Court does not accept imprisonment and lack of access to what might be deductible expense documentation as reasonable cause for late filing.

Copyright 2019 Kaplan, Inc.

Direct download: 2019-09-30_Rentals_and_the_Safe_Harbor.mp3
Category:general -- posted at: 5:45pm EDT

Current Federal Tax Developments for the week of September 23, 2019: Zombie Power of Attorney

  • IRS releases final and new proposed regulations on §168(k) bonus depreciation
  • Settlement offer to be sent to 200 taxpayers under exam for microcaptive structures
  • Government shutdown causes IRS to lose ability to extend statute taxpayer had already agreed to extend
  • Power of attorney not used by son nevertheless left him authorized to act for father, barring claim for extended statute
  • CPA ordered to turn over tax returns of client based on two factor test

Copyright 2019, Kaplan, Inc.

Direct download: 2019-09-23_Zombie_Power_of_Attorney.mp3
Category:general -- posted at: 5:34pm EDT

Current Federal Tax Developments for the week of September 16, 2019: §451 Week

  • Students learns real life lesson on taxation of prizes, and we get a tax history lesson
  • Proposed regulations issued for advance payments under TCJA §451(c)
  • Proposed regulations issued for §451(b) revenue conformity added by TCJA

Copyright 2019 Kaplan, Inc.

Direct download: 2019-09-16_Section_451_Week.mp3
Category:general -- posted at: 1:18pm EDT

Current Federal Tax Developments for the week of September 9, 2019: But I Promise, Really!

  • IRS release instructions to 2019 §199A simple deduction form with additional informal guidance
  • Memorandum discusses what does and does not qualify as having made a payment to a retirement plan
  • Relief granted to file the second copy of the Form 3115 late for an automatic method change, but at a cost
  • Activities failed to count as rentals, could not be combined into rental activity by real estate professional
  • A flawed S election uncovered during due diligence for sale of the corporation

Copyright 2019 Kaplan, Inc.

Direct download: 2019-09-09_But_I_Promise_Really.mp3
Category:general -- posted at: 1:41pm EDT

Current Federal Tax Developments for the week of September 3, 2019: No Horse, No Business

  • Tax Court finds that taxpayer did not have a trade or business of raising/showing horses since she didn’t have a horse
  • Tax Court rejects IRS’s “step in the shoes” theory for gifted partnership interest with interest from debt-financed distribution received by donor
  • IRS accepts court’s revision of IRA beneficiary, surviving spouse allowed to treat IRA as her own
  • Coffeehouse was not a §501(c)(3) charitable organization
  • Notice of deficiency sent to addresses used on returns found to be sent to last known address

Copyright 2019 Kaplan, Inc.

Direct download: 2019-09-03_No_Horse_No_Business.mp3
Category:general -- posted at: 12:28pm EDT

Current Federal Tax Developments for the week of August 26, 2019: Watching Paint Dry Doesn’t Count

  • Taxpayer found both to have chosen the accrual method and to be required to use it as well
  • §451 proposed regulations exit OIRA review
  • Taxpayers records found to overstate hours by 150 hours, not qualified as a real estate professional
  • IRS issues formal memo changing position on ability to claim foreign tax credit on certain French taxes

Copyright 2019 Kaplan, Inc.

Direct download: 2019-08-26_Watching_Paint_Dry_Doesnt_Count.mp3
Category:general -- posted at: 7:08pm EDT

Current Federal Tax Developments for the week of August 19, 2019: George M Would Be Proud...

  • Taxpayer “wins” on a Cohan style case, but things don’t really go well

  • Qualified plan distribution is part of taxable income for the taxpayer even if the taxpayer doesn’t cash the check

  • An estate cannot avail itself of the economic disability tolling of the statute of limitations (and it wouldn’t have mattered anyway).

  • IRS to send out estimated tax penalty refund checks to 400,000 taxpayers

Copyright 2019 Kaplan, Inc.

Direct download: 2019-08-19_George_M_Would_Be_Proud.mp3
Category:general -- posted at: 1:49pm EDT

This week we look at:

  • Kansas releases out of state seller rules that have no de minimis levels
  • Memorandum holds that partial denial of earned income tax credit can lead to loss of all credit for following two years
  • Tennessee court finds that Boyle rule still applies, taxpayer cannot rely on preparer to efile extension
  • New online tax withholding estimator released by IRS, second revised Form W-4 follows shortly after
  • Revised third-party contact rules released prior to Taxpayer First Rule change that takes effect August 15, 2019

Copyright 2019, Kaplan, Inc.

Direct download: 2019-08-12_Toto_Needs_Sales_Tax_Money.mp3
Category:general -- posted at: 12:18pm EDT

Current Federal Tax Developments for the week of August 5, 2019: About that Bitcoin...

  • IRS sends out 10,000 letters on cryptocurrency, including some demanding a response
  • Relief granted on three bonus depreciation elections for year that includes September 28, 2017
  • Draft Schedule K-1 for Form 1120S revised to change §199A information reporting
  • Letter ruling holds a partial deduction allowed for DNA tests requested by an individual
  • Organization not operated exclusively for charitable purpose, §501(c)(3) status revoked retroactively

Copyright 2019, Kaplan, Inc.

Direct download: 2019-08-05_About_That_Bitcoin.mp3
Category:general -- posted at: 5:51pm EDT

Current Federal Tax Developments for the week of August 5, 2019: About that Bitcoin...

  • IRS sends out 10,000 letters on cryptocurrency, including some demanding a response
  • Relief granted on three bonus depreciation elections for year that includes September 28, 2017
  • Draft Schedule K-1 for Form 1120S revised to change §199A information reporting
  • Letter ruling holds a partial deduction allowed for DNA tests requested by an individual
  • Organization not operated exclusively for charitable purpose, §501(c)(3) status revoked retroactively

Copyright 2019, Kaplan, Inc.

Direct download: 2019-08-05_About_That_Bitcoin.mp3
Category:general -- posted at: 5:51pm EDT

Current Federal Tax Developments for the week of August 5, 2019: About that Bitcoin...

  • IRS sends out 10,000 letters on cryptocurrency, including some demanding a response
  • Relief granted on three bonus depreciation elections for year that includes September 28, 2017
  • Draft Schedule K-1 for Form 1120S revised to change §199A information reporting
  • Letter ruling holds a partial deduction allowed for DNA tests requested by an individual
  • Organization not operated exclusively for charitable purpose, §501(c)(3) status revoked retroactively

Copyright 2019, Kaplan, Inc.

Direct download: 2019-08-05_About_That_Bitcoin.mp3
Category:general -- posted at: 5:51pm EDT

Current Federal Tax Developments for the week of August 5, 2019: About that Bitcoin...

  • IRS sends out 10,000 letters on cryptocurrency, including some demanding a response
  • Relief granted on three bonus depreciation elections for year that includes September 28, 2017
  • Draft Schedule K-1 for Form 1120S revised to change §199A information reporting
  • Letter ruling holds a partial deduction allowed for DNA tests requested by an individual
  • Organization not operated exclusively for charitable purpose, §501(c)(3) status revoked retroactively

Copyright 2019, Kaplan, Inc.

Direct download: 2019-08-05_About_That_Bitcoin.mp3
Category:general -- posted at: 5:51pm EDT

Current Federal Tax Developments for the week of August 5, 2019: About that Bitcoin...

  • IRS sends out 10,000 letters on cryptocurrency, including some demanding a response
  • Relief granted on three bonus depreciation elections for year that includes September 28, 2017
  • Draft Schedule K-1 for Form 1120S revised to change §199A information reporting
  • Letter ruling holds a partial deduction allowed for DNA tests requested by an individual
  • Organization not operated exclusively for charitable purpose, §501(c)(3) status revoked retroactively

Copyright 2019, Kaplan, Inc.

Direct download: 2019-08-05_About_That_Bitcoin.mp3
Category:general -- posted at: 5:51pm EDT

Current Federal Tax Developments for the week of August 5, 2019: About that Bitcoin...

  • IRS sends out 10,000 letters on cryptocurrency, including some demanding a response
  • Relief granted on three bonus depreciation elections for year that includes September 28, 2017
  • Draft Schedule K-1 for Form 1120S revised to change §199A information reporting
  • Letter ruling holds a partial deduction allowed for DNA tests requested by an individual
  • Organization not operated exclusively for charitable purpose, §501(c)(3) status revoked retroactively

Copyright 2019, Kaplan, Inc.

Direct download: 2019-08-05_About_That_Bitcoin.mp3
Category:general -- posted at: 5:51pm EDT

Current Federal Tax Developments for the week of August 5, 2019: About that Bitcoin...

  • IRS sends out 10,000 letters on cryptocurrency, including some demanding a response
  • Relief granted on three bonus depreciation elections for year that includes September 28, 2017
  • Draft Schedule K-1 for Form 1120S revised to change §199A information reporting
  • Letter ruling holds a partial deduction allowed for DNA tests requested by an individual
  • Organization not operated exclusively for charitable purpose, §501(c)(3) status revoked retroactively

Copyright 2019, Kaplan, Inc.

Direct download: 2019-08-05_About_That_Bitcoin.mp3
Category:general -- posted at: 5:51pm EDT

Current Federal Tax Developments for the week of August 5, 2019: About that Bitcoin...

  • IRS sends out 10,000 letters on cryptocurrency, including some demanding a response
  • Relief granted on three bonus depreciation elections for year that includes September 28, 2017
  • Draft Schedule K-1 for Form 1120S revised to change §199A information reporting
  • Letter ruling holds a partial deduction allowed for DNA tests requested by an individual
  • Organization not operated exclusively for charitable purpose, §501(c)(3) status revoked retroactively

Copyright 2019, Kaplan, Inc.

Direct download: 2019-08-05_About_That_Bitcoin.mp3
Category:general -- posted at: 5:51pm EDT

Current Federal Tax Developments for the week of August 5, 2019: About that Bitcoin...

  • IRS sends out 10,000 letters on cryptocurrency, including some demanding a response
  • Relief granted on three bonus depreciation elections for year that includes September 28, 2017
  • Draft Schedule K-1 for Form 1120S revised to change §199A information reporting
  • Letter ruling holds a partial deduction allowed for DNA tests requested by an individual
  • Organization not operated exclusively for charitable purpose, §501(c)(3) status revoked retroactively

Copyright 2019, Kaplan, Inc.

Direct download: 2019-08-05_About_That_Bitcoin.mp3
Category:general -- posted at: 5:51pm EDT

Current Federal Tax Developments for the week of August 5, 2019: About that Bitcoin...

  • IRS sends out 10,000 letters on cryptocurrency, including some demanding a response
  • Relief granted on three bonus depreciation elections for year that includes September 28, 2017
  • Draft Schedule K-1 for Form 1120S revised to change §199A information reporting
  • Letter ruling holds a partial deduction allowed for DNA tests requested by an individual
  • Organization not operated exclusively for charitable purpose, §501(c)(3) status revoked retroactively

Copyright 2019, Kaplan, Inc.

Direct download: 2019-08-05_About_That_Bitcoin.mp3
Category:general -- posted at: 5:51pm EDT

Current Federal Tax Developments for the week of August 5, 2019: About that Bitcoin...

  • IRS sends out 10,000 letters on cryptocurrency, including some demanding a response
  • Relief granted on three bonus depreciation elections for year that includes September 28, 2017
  • Draft Schedule K-1 for Form 1120S revised to change §199A information reporting
  • Letter ruling holds a partial deduction allowed for DNA tests requested by an individual
  • Organization not operated exclusively for charitable purpose, §501(c)(3) status revoked retroactively

Copyright 2019, Kaplan, Inc.

Direct download: 2019-08-05_About_That_Bitcoin.mp3
Category:general -- posted at: 5:51pm EDT

Current Federal Tax Developments for the week of August 5, 2019: About that Bitcoin...

  • IRS sends out 10,000 letters on cryptocurrency, including some demanding a response
  • Relief granted on three bonus depreciation elections for year that includes September 28, 2017
  • Draft Schedule K-1 for Form 1120S revised to change §199A information reporting
  • Letter ruling holds a partial deduction allowed for DNA tests requested by an individual
  • Organization not operated exclusively for charitable purpose, §501(c)(3) status revoked retroactively

Copyright 2019, Kaplan, Inc.

Direct download: 2019-08-05_About_That_Bitcoin.mp3
Category:general -- posted at: 5:51pm EDT

Current Federal Tax Developments for the week of August 5, 2019: About that Bitcoin...

  • IRS sends out 10,000 letters on cryptocurrency, including some demanding a response
  • Relief granted on three bonus depreciation elections for year that includes September 28, 2017
  • Draft Schedule K-1 for Form 1120S revised to change §199A information reporting
  • Letter ruling holds a partial deduction allowed for DNA tests requested by an individual
  • Organization not operated exclusively for charitable purpose, §501(c)(3) status revoked retroactively

Copyright 2019, Kaplan, Inc.

Direct download: 2019-08-05_About_That_Bitcoin.mp3
Category:general -- posted at: 5:50pm EDT

Current Federal Tax Developments for the week of July 29, 2019: 1982 Tax Form Nostalgia

  • IRS releases final regulations on §501(c)(4) notice
  • Taxpayers who paid certain French taxes may have refund opportunities
  • Six new compliance initiatives announced by IRS
  • Minor relief granted to file superseding returns to some CPAR covered partnerships
  • IRS releases a new draft version of Form 1099-NEC for the first time in 38 years

Copyright 2019 Kaplan, Inc.

Direct download: 2019-07-29_1982_Tax_Form_Nostalgia_Week.mp3
Category:general -- posted at: 5:42pm EDT

Current Federal Tax Developments for the week of July 22, 2019: The Short-Lived 1040 Postcard

  • Taxpayer who failed to file a signed Form 8332 with his return was denied the dependency exemption even though he eventually got a signed form
  • IRS updates list of allowed preventive care for high deductible health plans
  • IRS debuts new Form 1040-SR and revises Form 1040 to get rid of the postcard on draft 2019 forms the agency released

Copyright 2019 Kaplan, Inc.

Direct download: 2019-07-22_The_Short_Lived_1040_Postcard.mp3
Category:general -- posted at: 6:20pm EDT

This week we look at:

  • Taxes-Security-Together Checklist for tax professionals issued by the IRS

  • Tax Court found that taxpayer was victim of a bookkeeping error and had sent IRA rollover contribution to custodian, late rollover allowed

  • IRS discovers 31 years after the fact that a typo fix never was picked up in the Code of Federal Regulations

  • Frequently asked questions page issued to explain TCJA change to §704(d) partner basis limits on charitable deductions and foreign taxes

Copyright 2019, Kaplan, Inc.

Direct download: 2019-07-15_Fixing_Typos_Proves_to_Be_Hard.mp3
Category:general -- posted at: 8:19pm EDT

Update for the week of July 8, 2019. This week we look at:

  • The Taxpayer First Act of 2019, signed into law on July 1, 2019

  • The Supreme Court decides one trust due process case is enough for a single term

  • IRS proposed a change in MEP to allow a solution to the one bad apple problem

  • IRS goes back to issuing guidance via website FAQs, this time for QOFs

  • Employers will be able to truncate SSNs on W-2s given to employees--but not right away

  • IRS finalizes regulations barring partnerships from using disregarded entities to put partners on the payroll

Copyright 2019 Kaplan Professional Education

Direct download: 2019-07-08_Congress_Enacts_the_Taxpayer_First_Act_of_2019.mp3
Category:general -- posted at: 7:39pm EDT

Current Federal Tax Developments for the week of July 1, 2019:

  • IRS issues notice to advisers regarding what to do in the event of a data breach
  • IRS official confirms a §199A trade or business can include both commercial and residential rental
  • Taxpayer found Tax Court didn't believe his vehicle logs
  • Transaction found to be substantially similar to a listed transaction

Copyright 2019, Kaplan, Inc.

Direct download: 2019-07-01_About_That_Drive_from_Florida_to_South_Africa.mp3
Category:general -- posted at: 5:31pm EDT

Current Federal Tax Developments for the week of June 24, 2019: SCOTUS Just Says No

  • Proposed regulations issued on qualified agricultural cooperatives

  • US Supreme Court rules mere residence of beneficiary not enough to all state to tax entire income of trust

  • Taxpayer had a proper claim of right situation when she paid ½ of wages paid back by ex-spouse

  • IRS finalizes non-resident alien ESBT regulations

Copyright 2019, Kaplan, Inc.

Direct download: 2019-06-24_Supreme_Court_Just_Says_No.mp3
Category:general -- posted at: 4:28pm EDT

This week we look at:

  • IRS to stop faxing transcripts, only mail them to taxpayer’s address of record

  • Final regulations issued for state tax credit donations and new way to report credit as tax paid

  • IRS finalizes regulations creating two new HRAs

Copyright 2019, Kaplan, Inc.

Direct download: 2019-06-16_Bring_on_the_New_HRAs.mp3
Category:general -- posted at: 3:30pm EDT

This week we look at

  • S corporation status lost when SMLLC shareholder adds a new interest holder

  • Tax Court does not accept author’s attempt to treat a portion of her income as not self-employment income

  • IRS releases employer tables and worksheets for TCJA-aware draft Form W-4

  • TIGTA finds that LB&I imposes accuracy-related penalties at lower rate than does SE/SE

  • Envelope used to file Tax Court petition lacked postmark, taxpayer could not explain delivery much later than would be expected for timely mailed document

Direct download: 2019-06-10_Being_Yourself_as_a_Business.mp3
Category:general -- posted at: 10:45pm EDT

This week we look at

  • Evangelizing did not give rise to charitable deduction for most expenses

  • DC Circuit agrees with Tax Court that failure to disclose basis of asset doomed $33 million contribution

  • Taxpayers lose nearly $1 million of basis due to lack of old documents

  • IRS tries one more time to develop a W-4 for the TCJA era

Copyright 2019, Kaplan, Inc.

Direct download: 2019-06-03_Sweating_the_Details_or_Lose_Out.mp3
Category:general -- posted at: 9:33pm EDT

This week we look at:

  • Virtual currency guidance promised by IRS Commissioner

  • HSA numbers for 2020 released by IRS

  • Auto depreciation limits for 2019 released by IRS

  • House passes retirement reform bill, would drastically cut back on the use of stretch IRAs

  • Assistant US Attorney warns preparers about criminal exposure when they don’t raise enough issues about loans

Copyright 2019, Kaplan, Inc.

Direct download: 2019-05-28_Another_New_Tax_Bill.mp3
Category:general -- posted at: 10:07pm EDT

This week we look at:

  • Review Wolters Kluwer IRS response and other issues

  • IRS releases a new worksheet for computing tax when there are 25% or 28% gains

  • Tax Court finds IRS did not have authority to find Medicare difficulty payments nontaxable in Notice 2014-7

  • CA10 agrees with Tax Court that S corporation cannot accrue wages on participants

  • Taxpayer materially participated in activity under facts and circumstances test

Copyright 2019, Kaplan, Inc.

Direct download: 2019-05-20_Schedule_D_Problem.mp3
Category:general -- posted at: 4:26pm EDT

This week we look at:

  • Wolters Kluwer CCH systems suddenly taken offline due to malware issue

  • GAO criticizes security of e-file providers and software developers

  • IRS updates maximum vehicle values for cents-per-mile and FAVR

  • IRS clarifies redemptions treated as dividends taxation when paid during post-termination transition period

  • Deduction for Connecticut estate taxes must be reduced by portion allocable to state’s gift taxes added back paid in 3 prior years

  • My boss ordered me to do it doesn’t work for trust fund penalty even when the boss is an agent of a federal agency

Direct download: 2019-05-13_Malware_Cybersecurity_and_Tax_Practice.mp3
Category:general -- posted at: 8:47pm EDT

Current Federal Tax Developments for the week of May 6, 2019: Fragile: Handle with Care - S Corporations

  • Taxpayer’s marriage forces repayment of advance PTC, unfairness is not a defense

  • State tax refundable credit in excess of taxes is taxable income to taxpayer

  • IRS expands determination letter to cover a limited number of existing plans

  • LLC operating agreement adoption terminates S election

Copyright 2019, Kaplan, Inc.

Direct download: 2019-05-06_Fragile-_Handle_with_Care_-_S_Corporations.mp3
Category:general -- posted at: 10:07pm EDT

This week we look at:

  • Taxpayer finds expense can’t be assigned to business based on best result

  • IRS greatly expands the FAQ on Section 199A, including a major surprise to many on handling S corporation shareholders

  • IRS updates the EPCRS program to add more self-correction options

  • Chief Counsel Email holds that using a PEO does not allow a partner to be treated as the employee of partnership

Copyright 2019, Kaplan, Inc.

Direct download: 2019-04-29_QA_33_-_The_IRS_FAQ_Says_What.mp3
Category:general -- posted at: 1:08pm EDT

This week we look at the following

  • Draft forms issued to be used to report §199A deduction on 2019 returns

  • Proposed regulations address NRA potential current beneficiaries of ESBTs that are also grantor trusts

  • Memorandum address impact of §318 attribution rules on §1372 and self-employed health insurance deduction

  • Second (and maybe final) set of proposed regulations on opportunity zone issues

  • Ninth Circuit decides IRS regulations did remove the ability to use common law mailbox rule to prove timely filing

Copyright 2019, Kaplan, Inc.

Direct download: 2019-04-22_IRS_Gets_Busy_After_Tax_Season.mp3
Category:general -- posted at: 10:10am EDT

This week we review where we stand on TCJA guidance at the end of the first TCJA tax season.

  • §199A - Mainly Post-Final Regulation Issues
  • §163(j) - Proposed Regulations Out, Awaiting Final Regulations
  • Depreciation - Will the Retail Glitch Get Fixed? And When?
  • SALT - Soon to be released final regulations on state tax credits and then what
  • §461(j) - Limit on business losses - where’s the guidance
  • Other areas

Copyright 2019, Kaplan, Inc.

Direct download: 2019-04-16_Still_to_Come_on_TCJA.mp3
Category:general -- posted at: 5:47pm EDT

Current Federal Tax Developments for the week of April 8, 2019: SALT and the Home Office

  • IRS sends proposed regulations on §199A for cooperatives to OIRA for review

  • PMTA outlines intereaction of home office and SALT cap

  • Trade or business definition for instructions in Form 461 issue identified by IRS

  • Second Circuit reverses Tax Court decision that found a tax “black hole”

Copyright 2019 Kaplan, Inc.

Direct download: 2019-04-08_SALT_and_the_Home_Office.mp3
Category:general -- posted at: 10:17am EDT

Current Federal Tax Developments for the week of April 1, 2019: Tax Benefit Rules and Refunds

  • Electric vehicle credits for GM vehicles to begin one year phase out

  • IRS gives formal guidance on treatment of state income tax refunds following the TCJA $10,000 cap

  • SALT workaround regulations and related notice sent to OIRA

  • IRS changes requirements to obtain EIN, requires responsible person to have SSN or ITIN

  • Final regulations published on reportable transaction law modifications from 2010

Copyright 2019 Kaplan, Inc.

Direct download: 2019-04-01_Tax_Benefit_Rule_and_Refunds.mp3
Category:general -- posted at: 1:16pm EDT

This week we look at:

  • QBI and disallowed passive losses

  • Minister’s housing allowance ruled to be acceptable under the U.S. Constitution

  • Pilot had no profit motive for business related to vintage World War II aircraft

  • IRS suspends two Revenue Rulings related to active trade or business issues under §355

  • Relief from underpayment of estimated tax penalty expanded by IRS

Copyright 2019 Kaplan, Inc.

Direct download: 2019-03-25_More_Underpayment_Relief.mp3
Category:general -- posted at: 1:25pm EDT

Current Federal Tax Developments for the week of March 18, 2019: Technicalities and Glitches

  • Software glitches in the first years under TCJA

  • Lump sum social security benefits are part of MAGI for the premium tax credit

  • Safe harbor statements have to be signed and then attached to electronically filed returns as a PDF

  • Taxpayer’s mistake in listing old address on tax return proves costly

  • Tax Court rejects no harm, no foul view with regard to penalties for filing an S corporation return late

Copyright 2019 Kaplan, Inc.

Direct download: 2019-03-18_Technicalities_and_Glitches.mp3
Category:general -- posted at: 11:10am EDT

This week we talk about the following:

  • Look at some items causing confusion over §199A on discussion forums as returns are prepared

  • Treasury announces changes in temporary regulations and subregulatory guidance

  • Recipients of sexual harassment and sexual abuse settlements with confidentiality clause allowed to deduct legal fees

  • Gambling loss triggered by impulse control problem side effect of prescribed drug not a casualty loss

  • Proposed regulations issued for FDII and GILTI

  • IRS no longer plans to issue regulations to bar post-retirement lump-sum distributions from defined benefit plans

  • Partnerships required to add tax basis disclosures given until March 15, 2020 to provide information to IRS

Copyright 2019 Kaplan, Inc.

Direct download: 2019-03-11_199A_Return_Issue_and_Tax_Returns.mp3
Category:general -- posted at: 12:39pm EDT

Current Federal Tax Developments for the week of March 4, 2019: Tax Refunds and the 2019 Tax Returns

  • A look at the special rules under §111 for tax benefit and how it impacts state tax refunds from 2018 returns

  • No Fifth Amendment defense against assertion that taxpayer is trafficking under §280E

  • IRS grants extension of time to file returns for farmers and fishermen

  • Tax Court looks at the application of the penalty review process to automated exams

  • IRS gave insufficient notice that a third party would be contacted for information

Copyright 2019 Kaplan, Inc.

Direct download: 2019-03-04_Tax_Refunds_and_the_2019_Tax_Returns.mp3
Category:general -- posted at: 10:52am EDT

This week we look at:

  • State found to illegally discriminate against federal law enforcement retirees due to tax break for state law enforcement retirees

  • IRS decides expanded availability of meal delivery means fewer meals are truly for the convenience of the employer

  • IRS acquiesces in case regarding meals for hockey teams

  • Politico points out loophole that may exist for owners of co-op shares with regard to $10,000 tax limitations

  • Looking at options beyond the safe harbor for rentals under §199A

Copyright 2019 Kaplan, Inc.

Direct download: 2019-02-25_Co-op_Real_Estate_Tax_Issue.mp3
Category:general -- posted at: 2:27pm EDT

This week we look at:

  • Fix for auto depreciation quirk added by TCJA released by IRS

  • A subtrust qualified as a conduit trust for IRA distribution purposes

  • AICPA asks for relief from potential impact of syndicate rules on small business tax relief

  • Form 1065 instructions add a requirement for certain partnerships to disclose negative tax basis

  • Checkbox added for when basis calculation required with Form 1040 and situations where it is required expanded by IRS

Copyright 2019 Kaplan, Inc.

Direct download: 2019-02-18_Forms_and_Instructions_Week.mp3
Category:general -- posted at: 12:10pm EDT

This week we look at:

  • Situations where an employer can recover HSA funds from employee accounts

  • IRS decides taxpayers can use Rev. Proc. 2018-60 even if currently using an impermissible method of accounting

  • Taxpayer reasonably relied on CPA's advice and escapes penalties

  • Airline passenger discovers he can't sue the TSA for his lost tax paperwork

Copyright 2019 Kaplan, Inc.

Direct download: 2019-02-11_Tax_Records_and_Luggage.mp3
Category:general -- posted at: 3:15pm EDT

This week we look at:

  • IRS delays end of faxing transcripts after Chair and ranking minority member of Senate Finance Committee send a joint letter requesting a delay

  • Taxpayers could not avoid NOL carryforward election they claimed they were unaware of

  • IRS publishes corrected version of §199A regulations, changes one word some see as potentially important

  • Article discusses risks to marijuana businesses from electing small business inventory relief added by TCJA

Copyright 2019, Kaplan, Inc.

Direct download: 2019-02-04_Whats_in_a_Word_.mp3
Category:general -- posted at: 3:42pm EDT

This week we look at:

  • Reported IRS backlog of unanswered letters that arrived during the shutdown

  • IRS publishes information on impact of shutdown on matters before the Tax Court

  • W-2 wages Revenue Procedure made final at same time §199A final regulations come out

  • More thoughts on the §199A final regulations

Copyright 2019, Kaplan, Inc.

Direct download: 2019-01-28_IRS_Funding_Restored_At_Least_for_Now.mp3
Category:general -- posted at: 6:56pm EDT

This week we look at:

  • New York State Publishes Its Wayfair Guidance, Demanding Immediate Compliance
  • Trust Case Going to US Supreme Court
  • Sequestration Does Not Apply to Minimum Tax Credit
  • Proposed Safe Harbor for Rental as a Trade or Business Under §199A
  • Final Regulations Are Out - §965 and, the Big One, §199A
  • IRS Grants Limited Waiver of Underpayment Penalties

Copyright 2019 Kaplan Professional Education

Direct download: 2019-01-21_199A_Final_Regulations_and_Rental_Safe_Harbor.mp3
Category:general -- posted at: 11:16am EDT

This week we look at:

  • IRS reopens IVES and user-fees based programs

  • Advisers need to be sure to check syndicate rules to assure entity not subject to §163(j) rules

  • Treat of realtors revised in second draft version of portion of Publication 535

  • Filing season to start January 28, refunds are going to be issued

  • Address to file gift tax returns has changed, estate tax return address to change in July

Copyright 2019, Kaplan, Inc.

Direct download: 2019-01-14_-_Syndicate_Danger.mp3
Category:general -- posted at: 12:39pm EDT

This week's developments:

  • IRS Notice gives guidance to tax-exempt organizations on excess compensation tax

  • Outgoing W&M Chairman publishes discussion paper on TCJA technical corrections

  • §199A final regulations still sitting at OIRA

Copyright 2019, Kaplan, Inc.

Direct download: 2019-01-07_All_Quiet_on_the_Tax_Front.mp3
Category:general -- posted at: 4:44pm EDT

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