This week we look at:

  • IRS clarified FAQ on §139A and backpay for wrongfully incarcerated members of the armed services
  • FinCEN adds to the FAQ on beneficial ownership information reporting

 

Direct download: 2023-11-20_FinCEN_FAQ_Update_for_BOI_Reporting.mp3
Category:general -- posted at: 6:02pm EST

This week we look at:

  • Inflation adjusted numbers for 2024 issued by the IRS
  • Minor revisions made in final BOI FinCEN Identifier rules
  • The IRS issues its second ERC-related GLAM, this time taking aim at OSHA related partial shutdown theories
  • If a Notice isn’t binding on the courts, does that mean we can just pretend it doesn’t exist when advising our clients?
Direct download: 2023-11-13_IRS_Completes_Inflation_Adjusted_Number_Lists_for_2024.mp3
Category:general -- posted at: 2:31pm EST

This week we look at:

  • 2024 inflation adjusted retirement numbers released by the IRS
  • MeF 1040 shutdown date announced by the IRS
  • Trust found liable for transferee tax in failed Son-of-BOSS shelter to offset stock sale gain
  • IRC §41 refund claim grace period extended for yet another year
  • Tax Court refuses to expand equitable relief for missing 90-day deadline to file petition
Direct download: 2023-11-06_Retirement_Plan_Numbers_Released_for_2024.mp3
Category:general -- posted at: 4:28pm EST

This week we look at

  • Taxpayers can’t rely on paid preparer as reasonable cause for late filing, even when using electronic filing
  • IRS could assert negligence penalty (and obtain supervisory approval) after failing to obtain approval for substantial underpayment penalty
  • IRS makes “temporary” electronic signature program permanent by moving it into the Internal Revenue Manual
Direct download: 2023-10-30_Boyle_Decision_Covers_Electronic_Filing.mp3
Category:general -- posted at: 6:56pm EST

This week we look at

  • PTIN renewals are now open for 2024
  • IRS announces program to allow for withdraw of ERC claims
  • Actor’s estate loses in attempt to claim he had validly rolled over a non-traditional investment held in his IRA
Direct download: 2023-10-21_An_Offer_the_Actor_Should_Have_Refused.mp3
Category:general -- posted at: 2:58pm EST

This week we look at

  • Sloppy records cost CPA the vast majority of his business deductions
  • IRS issues warning about art deduction tax promotions aimed at high-income taxpayers
  • IRS gives details on transfers of electrical vehicle credits to dealers beginning in 2024

Copyright 2023, Kaplan, Inc.

Direct download: 2023-10-09_EV_Credit_Transfer_to_Dealer_Guidance_Issued.mp3
Category:general -- posted at: 12:25pm EST

This week we look at:

  • IRS reduces PTIN fees substantially
  • Wash sale rules do not apply to losses on disposition of money market funds
  • IRS highlights new capabilities added to TaxPro accounts
  • Employers can set up leave-based donation programs for 2023 Hawaii wildfire relief
  • FinCEN grants 60 additional days for entities created in 2024 to file initial reports
Direct download: 2023-09-30_Limited_Dealy_in_Some_CTA_BOI_Initial_Report_Filing_Dates.mp3
Category:general -- posted at: 4:39pm EST

This week we look at:

  • FinCEN provides guide to small businesses for beneficial ownership reporting under the Corporate Transparency Act
  • Taxpayer cannot rely on the mailbox rule to prove timely mailing/filing of tax return, as §7502 is the sole way of proving timely postmark and get presumption of delivery
  • Impact of receipt of a CP2100/2100A notice on backup withholding
Direct download: 2023-09-25_FinCEN_Issues_Guide_for_Small_Business_CTA_BOI_Reporting.mp3
Category:general -- posted at: 5:37pm EST

This week we look at:

  • Just having a CPA prepare a taxpayer’s return does mean the taxpayer will get reasonable cause relief for assessments
  • IRS announces halt to processing of new ERC claims until after 2023, will slow processing of claims currently in progress
Direct download: 2023-09-18_Halt_in_ERC_Claim_Processing_for_New_Claims.mp3
Category:general -- posted at: 4:48pm EST

This week we look at:

  • IRS make last minute change to K-2/K-3 FAQ for 2022 returns
  • Preliminary guidance for §174 changes made in TCJA that took effect in 2022 issued by the IRS

Copyright 2023, Kaplan, Inc.

Direct download: 2023-09-11_Better_Late_Than_Never_Section_174_Guidance_Arrives.mp3
Category:general -- posted at: 6:11pm EST

This week we look at:

  • HHS sends letter to DEA recommending that marijuana be reclassified as a Schedule III drug
  • General guidance issued determining tax status of 2023 state payments - and IRS asks for comments prior to giving additional guidance
  • IRS clarifies limits of 2007 CCA on ESBTs and NOLs
  • News release on electronic filing of Form 8300

 

Direct download: 2023-09-05_Electronic_Filing_of_Information_Return_Mandate_Issues.mp3
Category:general -- posted at: 3:10pm EST

This week we look at:

  • Proposed regulations issued for digital asset broker reporting on Form 1099-DA
  • IRS delays requirement for high income employees to make employer plan catch-up contribution to designated Roth accounts until plan years beginning after December 31, 2025
  • 2024 health care premium tax credit percentages published by the IRS
Direct download: 2023-08-28_Week_of_IRS_Delaying_Requirements.mp3
Category:general -- posted at: 6:42pm EST

This week we look at:

  • Limited relief likely coming for beneficial ownership reporting
  • IRS being challenged in an attempt to treat state law limited partners as receiving SE income
  • Rent your home to your business for 13 days each year plan mainly failed
  • Advance memo states IRS objection to a marketed trust tax avoidance plan
  • IRS memo explains credit unions can only claim COVID ERC on 2021 wages

This week we look at:

Deduction for non-qualified deferred compensation not accelerated for the seller when the liability is transferred to the buyer of a business 
Tax professionals and taxpayers warned about issues with certain employee stock ownership plan (ESOP) arrangements
Reduction of non-recourse debt amount was added to sales proceeds, not a cancellation of debt so no §108 relief was available

Direct download: 2023-08-14_IRS_Issues_Warning_for_Certain_ESOP_Programs.mp3
Category:general -- posted at: 7:39pm EST

This week we look at:

  • IRS rules cryptocurrency staking rewards are taxable when taxpayer obtains dominion and control
  • Interim guidance issued for home energy audit tax credit under IRC §25C added by IRA 2022
  • Proposed regulations issued to add monetized installment sales to listed transactions
Direct download: 2023-08-07_IRS_Finally_Tells_Us_Their_Position_on_Staking_Rewards.mp3
Category:general -- posted at: 7:07pm EST

This week we look at:

  • Oversight Subcommittee of House Ways & Means Committee holds a hearing on ERC issues, discusses potential amnesty program
  • IRS ending most announced revenue officer visits
  • Taxpayer finds out that there may very well be a tax consequence when you borrow against your life insurance policy and then let the policy lapse
Direct download: 2023-07-31_The_ERC_Hearing_Before_Congress_Left_for_the_August_Recess.mp3
Category:general -- posted at: 6:07pm EST

This week we look at:

  • IRS memo makes it clear the agency is very skeptical about extended supply chain ERC claims
  • Third Circuit rules that equitable relief is available for failure to file Tax Court petition in 90 day period for a deficiency
  • IRS asked by Tax Court to justify suspense account method for losses deducted in excess of basis in closed years
  • Taxpayers had to pay tax on funds taken from IRA/pension funds that were paid to fraudster

The IRS looks at:

  • IRS extends SECURE Act inherited IRA RMD relief for one additional year, adds special rollover rule for those born in 1951 due to SECURE 2.0 Act changes
  • IRS grants relief to victims of Vermont flooding.
  • Failure to attach simple election leads to requesting (and paying for) 11 separate private letter rulings

Copyright 2023, Kaplan, Inc.

 

Direct download: 2023-07-17_IRS_Extends_RMD_Relief_by_One_Year.mp3
Category:general -- posted at: 7:11pm EST

This week we look at:

  • S corporation loses on research credit claim and gets hit with penalties - risks of a credit study
  • Exempt organization status denied for organization formed to raise funds for one person’s medical bills
  • Discussion of tax research hierarchy in this short week
Direct download: 2023-07-10_Research_Credit_Blues.mp3
Category:general -- posted at: 7:55pm EST

This week we look at: 

  • Supreme Court takes on §965 transition tax case for upcoming term:  what do we do to protect our clients?
  • The IRS releases draft versions of key 2023 partnership income tax returns
  • Firefighter’s sexual harassment complaint settlement was not excludable from income
Direct download: 2023-07-03_Supreme_Court_Protective_Claims_and_965_Transition_Tax.mp3
Category:general -- posted at: 1:42pm EST

This week we look at:

  • IRS ends COVID-19 relief for high deductible health plans effective for plan years ending after 12/31/24
  • Taxpayer fails in attempt to get IRS permission to make a late §475(f) mark to market election
  • Taxpayer who filed Tax Court petition 11 seconds too late due to technology challenges has petition dismissed
  • Sherlock Holmes on tax research

 

Direct download: 2023-06-26_Sherlock_Holmes_and_Tax_Reserach.mp3
Category:general -- posted at: 7:41pm EST

This week we look at

  • OIRA is no longer going to review IRS regulations before issuance

  • IRS updates list of automatic accounting method changes

  • Proposed regulations issued on transfers of certain energy credits and DirectPay for certain credits

  • What can go wrong with an employee retention credit refund claim?

Direct download: 2023-06-19_What_Could_Be_the_Harm_of_Filing_an_ERC_Claim.mp3
Category:general -- posted at: 5:27pm EST

This week we look at:

  • 3 proposed tax bills introduced by Chair of House Ways & Means Committee
  • Wellness indemnification payment is taxable income to employee and subject to payroll taxes
  • IRS grants request to make election to skip claiming bonus depreciation when partnership discovers claiming bonus is bad news at the state level for certain partners
Direct download: 2023-06-12_Opening_Offer_in_Negotiations_fo_2023_Tax_Package.mp3
Category:general -- posted at: 8:04pm EST

This week we look at:

  • Fourth Circuit does not agree with view expressed by Seventh Circuit in Menard, Inc. that C corporation reasonable compensation only depends on a reasonable return to investors
  • Eleventh Circuit holds that “hobby loss” expenses under §183 are miscellaneous itemized deductions
  • Elderly attorney had reasonable cause for failure to file payroll tax returns and timely pay payroll tax liabilities
Direct download: 2023-06-05_Hobby_Losses_Expenses_Effectively_Nondeductible.mp3
Category:general -- posted at: 8:45pm EST

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
Direct download: 2023-05-30_Failure_to_File_Claim_Via_Certified_Mail_Was_a_Bad_Idea.mp3
Category:general -- posted at: 6:39pm EST

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

 

Direct download: 2023-05-22_Supreme_Court_and_IRS_Giving_Notice_of_Summons.mp3
Category:general -- posted at: 7:14pm EST

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
Direct download: 2023-05-15_The_PEO_and_Your_ERC_Refund.mp3
Category:general -- posted at: 5:31pm EST

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.

Direct download: 2023-05-08_Time_Zones_and_Timely_Electronic_Filings.mp3
Category:general -- posted at: 7:04pm EST

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.

 

Direct download: 2023-04-23_Catching_Up_After_Tax_Season.mp3
Category:general -- posted at: 5:35pm EST

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.

Direct download: 2023-04-02_EV_Battery_Rules_Released.mp3
Category:general -- posted at: 7:02pm EST

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
Direct download: 2023-03-26_ERC_Scams_Lead_the_Dirty_Dozen.mp3
Category:general -- posted at: 6:03pm EST

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

 

Direct download: 2023-03-20_Taxes_and_Medical_Expenses.mp3
Category:general -- posted at: 6:57pm EST

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
Direct download: 2023-03-13_Seaview_Trading_Reversed_in_Ninth_Circuit.mp3
Category:general -- posted at: 6:21pm EST

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
Direct download: 2023-03-06_Non-Willful_FBAR_Penalty_is_on_a_Per-Form_Basis.mp3
Category:general -- posted at: 5:12pm EST

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
Direct download: 2023-02-27_More_Information_Returns_Required_to_be_E-Filed.mp3
Category:general -- posted at: 5:55pm EST

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
Direct download: 2023-02-13_State_Payment_Relief_for_Taxpayers.mp3
Category:general -- posted at: 5:57pm EST

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)
Direct download: 2023-02-06_Reconsidering_EV_SUVs.mp3
Category:general -- posted at: 5:37pm EST

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
Direct download: 2023-01-30_Welcome_to_IRIS.mp3
Category:general -- posted at: 7:26pm EST

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
Direct download: 2023-01-23_IRS_Says_Phones_Are_Improving.mp3
Category:general -- posted at: 6:22pm EST

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
Direct download: 2023-01-16_The_IRS_Memos_on_Cryptocurrency.mp3
Category:general -- posted at: 9:13am EST

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

Direct download: 2023-01-09_S_Corporation_Warts_Review.mp3
Category:general -- posted at: 7:15pm EST

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.

Direct download: SECURE_2.0_Act_of_2022_Quick_Summary.mp3
Category:general -- posted at: 2:12pm EST

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
Direct download: 2023-01-03_Vehicle_Credit_Guidance_End_of_Year_Extravaganza.mp3
Category:general -- posted at: 11:06am EST

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.

Direct download: 2022-12-27_IRS_Delays_Expanded_Form_1099-K_Reporting_Requirements.mp3
Category:general -- posted at: 12:44pm EST

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.

Direct download: 2022-12-12_Try_Two_on_K-2_and_K-3_Instructions.mp3
Category:general -- posted at: 5:43pm EST

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.

Direct download: 2022-12-05_So_Many_Ways_to_Entirely_Lose_a_Loss_Deduction.mp3
Category:general -- posted at: 2:36pm EST

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.

Direct download: 2022-11-28_Difficulties_Using_LLC_as_Legal_Entity_for_S_Corporation.mp3
Category:general -- posted at: 2:56pm EST

This week we look at:

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

Copyright, Kaplan, Inc.

Direct download: 2022-11-21_IRS_News_Releases.mp3
Category:general -- posted at: 6:24pm EST

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.

Direct download: 2022-11-14_Impacts_of_the_Election_on_Tax.mp3
Category:general -- posted at: 3:49pm EST

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.

Direct download: 2022-10-31_Partnership_Schedule_K-2_Draft_Instructions_Issued.mp3
Category:general -- posted at: 9:49am EST

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.

Direct download: 2022-10-24_Two_Sets_of_Inflation_Adjusted_Numbers_Released_by_IRS.mp3
Category:general -- posted at: 1:37pm EST

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.

Direct download: 2022-10-10_SECURE_Required_Minimum_Distribution_Relief.mp3
Category:general -- posted at: 4:56pm EST

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.

Direct download: 2022-10-02_Beneficial_Owner_Reporting_Requirement_Coming_in_2024.mp3
Category:general -- posted at: 5:10pm EST

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.

Direct download: 2022-09-26_IRS_News_Releases_Emphasizing_Recent_Guidance.mp3
Category:general -- posted at: 5:35pm EST

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.

Direct download: 2022-09-18_New_PPP_Loan_Tax_Guidance_Appears.mp3
Category:general -- posted at: 4:35pm EST

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
Direct download: 2022-09-11_Proposed_EARN_Act.mp3
Category:general -- posted at: 3:55pm EST

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.

Direct download: 2022-08-29_IRS_Releases_Penalty_Relief.mp3
Category:general -- posted at: 5:35pm EST

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
Direct download: 2022-08-22_First_IRA_2022_Guidance_ReleasedA.mp3
Category:general -- posted at: 5:48pm EST

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.

Direct download: 2022-08-14_Highlights_of_the_Inflation_Reduction_Act_of_2022.mp3
Category:general -- posted at: 6:08pm EST

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
Direct download: 2022-08-08_Revised_Virtual_Asset_Question_for_2022_Form_1040.mp3
Category:general -- posted at: 8:48pm EST

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.

Direct download: 2022-08-01_IRA_of_2022_-_Will_It_Pass_and_What_Is_In_It.mp3
Category:general -- posted at: 8:56pm EST

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.

Category:general -- posted at: 7:17pm EST

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.

Direct download: 2022-07-18_Lack_of_a_Form_1099_and_Reasonable_Cause_.mp3
Category:general -- posted at: 4:28pm EST

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.

Direct download: 2022-07-11_IRS_Liberalizes_Late_Portability_Election_Relief.mp3
Category:general -- posted at: 7:19pm EST

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
Direct download: 2022-07-05_TAS_Starts_Accepting_Referrals_from_Congress.mp3
Category:general -- posted at: 2:58pm EST

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
Direct download: 2022-06-27_IRS_Falling_Further_Behind_Dealing_with_Paper.mp3
Category:general -- posted at: 4:22pm EST

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.

Direct download: 2022-06-20_Innocent_Spouse_Does_Not_Work_for_Payroll_Tax_Issues.mp3
Category:general -- posted at: 12:29pm EST

This week we look at:

  • IRS increases mileage rates effective July 1, 2022
  • Taxpayer unsuccessfully asks for relief for failing to file Form 3115
Direct download: 2022-06-13_Car_Mileage_Rate_Increases.mp3
Category:general -- posted at: 7:22pm EST

This week we look at:
  • 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.

Direct download: 2022-06-06_Importance_of_Keeping_Records.mp3
Category:general -- posted at: 9:07pm EST

This week we look at:
  • 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.

Direct download: 2022-05-22_What_Qualifies_as_Alimony.mp3
Category:general -- posted at: 7:55am EST

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.

Direct download: 2022-05-02_A_Problem_with_Managemnet_Fees.mp3
Category:general -- posted at: 7:32pm EST

This week we look at:
  • 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.

Direct download: 2022-04-25_Taxing_Times_for_Retired_Airline_Pilot.mp3
Category:general -- posted at: 1:03pm EST

This week we look at:
  • 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.

Direct download: 2022-04-04_SECURE_Act_Second_Version_Passes_House.mp3
Category:general -- posted at: 6:39pm EST

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.

Direct download: 2022-03-21_Limits_for_Vehicle_Depreciation_for_2022.mp3
Category:general -- posted at: 5:53pm EST

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
Direct download: 2022-03-14_Personal_vs_Business_Expenses.mp3
Category:general -- posted at: 6:08pm EST

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
Direct download: 2022-03-07_Farmer_and_Fisherman_Tax_Software_Relief.mp3
Category:general -- posted at: 2:12pm EST

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.

Direct download: 2022-02-28_At_Least_One_Couple_Are_Not_Tax_People.mp3
Category:general -- posted at: 7:52pm EST

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.

Direct download: 2022-02-21_IRS_Releases_K2_and_K3_Relief.mp3
Category:general -- posted at: 10:23am EST

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.

Direct download: 2020-02-14_IRS_Suspends_Issuing_More_Notice_Types.mp3
Category:general -- posted at: 10:39am EST

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.

Direct download: 2022-02-07_TaxPros_Account_Improvements_Coming.mp3
Category:general -- posted at: 2:32pm EST

  • 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.

Direct download: 2022-01-31_There_are_K-2s_and_K-3s_in_Your_Future.mp3
Category:general -- posted at: 6:32pm EST

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.

Direct download: 2022-01-10_Expenses_Used_for_PPP_Forgiveness_and_S_Corporations.mp3
Category:general -- posted at: 6:24pm EST

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

Direct download: 2021-01-03_IRS_Quietly_Changes_Web_Guidance.mp3
Category:general -- posted at: 8:15pm EST

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

Direct download: 2021-12-27_Day_After_Boxing_Day_Edition.mp3
Category:general -- posted at: 12:49pm EST

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.

Direct download: 2021-12-20_BBBA_Is_Not_Coming_Soon.mp3
Category:general -- posted at: 5:58pm EST

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

Direct download: 2021-12-13_Quarter_4_ERC_Guidance.mp3
Category:general -- posted at: 4:19pm EST

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.

Direct download: 2021-12-05_BBA_Email_Week.mp3
Category:general -- posted at: 5:00pm EST

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

Direct download: 2021-11-29_ERC_Developments_Return.mp3
Category:general -- posted at: 4:34pm EST

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

Direct download: 2021-11-29_ERC_Developments_Return.mp3
Category:general -- posted at: 4:34pm EST

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.

Direct download: 2021-11-22_Self-Directed_IRA_Problems.mp3
Category:general -- posted at: 2:25pm EST

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

Direct download: 2021-11-15_Inflation_Adjusted_Tax_Numbers_Are_Out.mp3
Category:general -- posted at: 7:01pm EST

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.

Direct download: 2021-11-08_Tax_Provisions_in_the_Infrastructure_Investment_and_Jobs_Act.mp3
Category:general -- posted at: 10:12am EST

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.

Direct download: 2021-11-08_Tax_Provisions_in_the_Infrastructure_Investment_and_Jobs_Act.mp3
Category:general -- posted at: 10:12am EST

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.

Direct download: 2021-11-01_Build_Back_Better_Act_Draft_-_Tax_Provisions.mp3
Category:general -- posted at: 9:42pm EST

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.

Direct download: 2021-10-25_S_Corporation_Basis_Reporting_on_Form_1040.mp3
Category:general -- posted at: 8:29am EST



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