Federal Tax Update Podcast

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.