Federal Tax Update Podcast

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