Federal Tax Update Podcast (general)

This week we look at:

• Additional BOI clarifications from online discussions regarding a CPA firm’s reporting obligations and confusions about reporting by entities that don’t register with a state for formation but which do file tax returns

This week we look at:

• DOJ has scheduled a December 2 hearing on the proposed rule to reschedule marijuana
• BOI reporting confusions that keep coming up as questions in online discussions - time to review

This week we look at:

• IRS announces the reopening of the ERC Voluntary Disclosure Program on somewhat less generous terms then the first program provided
• National Taxpayer Adviser discusses issues related to ERC Notices of Disallowance issued by the IRS

Copyright 2024, Kaplan, Inc.

This week we look at: 

• Tax bill fails to clear a procedural vote in the Senate, reducing the likelihood we’ll see the bill enacted before this Congress leaves office
• US District Court declines to issue preliminary injunction requiring the IRS to terminate the ERC claim moratorium, but finds much the court liked in the plaintiff’s arguments.

This week we look at:

• FinCEN adds two more questions to BOI FAQ page
• IRS adds five new warning signs for problematic ERC claims and announces new developments coming in ERC enforcement
• Chief Counsel Memorandum outlines position on tax exempt organizations dealing with §52 provisions for ERC

This week we look at:

• Taxpayer can’t simply rely on tax software when preparing their return, even if they aren’t being nominated for Secretary of Treasury
• IRS finalizes SECURE Act/SECURE 2.0 Act required minimum distributions regulations
• IRS proposed regulations address the problem of determining the applicable age for those born in 1959

This week we look at:

FinCEN updates the FAQs for BOI reporting, adding information about entities that cease to exist
New Jersey Committee on Unauthorized Practice of Law releases letter outlining when CPAs and EAs may prepare and/or file BOI reports for clients without the assistance of an attorney
Another PLR issued for missed ESBT elections for trusts that qualified to make such elections

This week we look at

End of term US Supreme Court cases that will likely impact challenges to Treasury regulations, overturning the concept of Chevron deference and extending the statute to challenge regulations under the Administrative Procedures Act

This week we look at:

• Ninth Circuit rules that statute of limitations for the IRS to sue for recovery of erroneous refund begins when the check clears the Federal Reserve and is approved for payment by the US Treasury
• IRS National Taxpayer Advocate announces the IRS will automate FTA abatement of penalties beginning in 2026
• Attorneys report some ERC claimants now interesting in filing suit to accelerate their claim processing

This week we look at:

• Supreme Court rules, in a more divided than it may appear opinion, that the §965 transition tax is Constitutional, sustaining the result from the Ninth Circuit in the Moore case.
• IRS gives interim guidance for special distribution relief in the SECURE Act 2.0 for certain distributions.
• IRS indicates it will now be (slowly) processing ERC claims, vast majority show issues

This week we look at:

• IRS provides last minute relief for payment of second quarter corporate estimated tax payments related to corporate alternative minimum tax
• En-banc rehearing request denied in case of Farhy v. Commissioner by DC Circuit
• CPA pleads guilty to tax charges related to syndicated conservation easement program
• Taxpayer Advocate warns of relying on generative AI for answering tax questions for consumer tax software - and there are just as big of issues for tax professionals

This week we look at:

• US Supreme Court rules that a requirement to redeem the decedent’s shares cannot be considered to reduce the value of the entity, but life insurance proceeds received by the entity to fund the buyout will increase the value
• Taxpayer denied relief for late rollover when funds were accidentally transferred from employer plan to Roth IRA
• IRS rules certain payments related to East Palestine, Ohio derailment are §139 disaster payments
• What options exist for an employer with a pending ERC claim?

This week we look at:

• IRS announces that Direct File will continue into 2025 and be expanded while maintaining other programs
• A taxpayer finds its not so simple as just file a Form 2553 if you want to have an LLC taxed as an S corporation, but did realize the error fast enough to get a PLR to restore S status

This week we look at:

• Yet another PLR requested for missed QSST election after S shares moved to trust following death of a shareholder
• Tax preparer’s conviction for willfully filing false returns upheld on appeal despite his argument he had doing what he did for years
• Letters to taxpayer from IRS Appeals did not extend the time to file suit for a claim for refund
• A partnership had properly elected to use BBA audit provisions early, rendering IRS FPAA invalid

This week we look at:

• IRS gives update on final results for ERC voluntary compliance program and discusses the future
• Taxpayer’s contract did not make payment contingent on success of research
• DOJ announces CPA firm barred from promoting CRAT/single premium annuity shelter
• IRS provides information on CAF “under review status” and changes to requesting transcripts

This week we look at:

• Final regulations issued on credit transfer provisions of the Inflation Reduction Act
• Tax Court rules the law does mandate a minimum level of attention by a supervisor when approving a proposed penalty
• IRS announces the end of the Direct File pilot and will announce the next steps shortly

Copyright 2024, Kaplan Financial Education

This week we look at:

• IRS again waives penalties for certain RMD distributions for inherited IRAs and retirement plans, but indicates this should be the last time
• FinCEN adds more Q&As to BOI FAQ for the first time since January

Copyright, Kaplan, Inc.

This week we look at

• Tax Court reverses position on validity of a regulation it had upheld four years ago
• US Supreme Court hears oral arguments in case involving estate tax value of a corporation that received life insurance to redeem the majority shareholder’s estate
• IRS Criminal Investigation Divisions announces update on COVID relief related investigations and convictions

This week we look at:

• As ERC voluntary compliance program ended, IRS release discusses agency’s plans going forward
• Senate Finance Chair Wyden indicates there be a cloture vote in the Senate on House passed tax bill
• IRS issues proposed regulations to make SPA CRAT arrangements listed transactions
• IRS asks Supreme Court to overturn Culp decision

This week we look at:

• CTA found to violate Constitution by US District Court Tax Court issues ruling on impact of SECURE 2.0 Act statute change on returns filed before December 29, 2022 effective date of the Act IRS warns about need to reconcile premium tax credit on Forms 1040 after seeing an increase in the number of returns being filed without the required reconciliation

This week we look at:

• CTA found to violate Constitution by US District Court
• Tax Court issues ruling on impact of SECURE 2.0 Act statute change on returns filed before December 29, 2022 effective date of the Act
• IRS warns about need to reconcile premium tax credit on Forms 1040 after seeing an increase in the number of returns being filed without the required reconciliation

This week we look at:

• More BOI resources from CAMICO made available by NJCPA
• District Court refuses to stay FBAR proceeding to await Tax Court result partially due to the age of the taxpayer
• IRS announces program to go after corporate jet personal usage
• The state of Arizona sues the IRS over tax status of state tax rebate.

This week we look at:

• Insurers updating their advice on BOI engagements
• SALT cap 2023 increase bill fails on a procedural vote in the House
• Jury finds taxpayer did not willfully fail to file FBAR reports
• IRS takes position third party payors liable for ERC refund repayment in addition to common law employers
• IRS sending out CP271 “soft letters” to those with open ERC refund claims
• S corporation has a failure of 9 trusts receiving shares from decedent Taxpayer unsuccessfully argues she only should pay taxes on social security actually received

This week we look at

• No movement on tax bills this week - nor is final action at all likely to take place before March
• E-Filing returns - good or bad idea? Two competing articles published this week
• Taxpayer owes tax on IRA forfeited to government as part of criminal conviction
• IRS discusses when CID voluntary disclosure program should be used instead of ERC voluntary disclosure program
• IRS warns about EFIN scam emails
• Taxpayer found to have submitted a late new refund claim rather than a revision to a timely filed informal claim

This week we look at:

• Bipartisan extender bill is passed by the House, but faces uncertain future in the Senate
• A limited, single-year SALT cap relief bill will be brought to the House floor as part of the compromise to pass the bipartisan bill
• Tax filing season for 2023 return begins this week
• A cautionary tale about phishing being used to obtain client tax information

This week we look at a proposed tax bill that has advanced out of the House Ways & Means Committee.

Copyright 2024, Kaplan, Inc.

This week we look at:

• Talks continue on proposed tax bill
• IRS provides guidance on Pension-Linked Emergency Savings Account anti-abuse provisions
• Relief granted for filing information found in Part IV of Form 8308 for 2023 returns
• IRS updates Notice describing how to obtain certain exemptions from the required electronic filing of certain entity information and tax returns

This week we look at:

• New work in progress to try and obtain a bipartisan tax bill
• IRS gives car dealers a brief extension to file time-of-sale reports
• IRS reverses direction on treatment of impact of adding a tax reimbursement clause to an IDGT
• Taxpayer can rely upon date IRS places in Notice of Deficiency as the last day to file a Tax Court petition

This week, we look at FinCEN's release of the BOI E-Filing site on January 1, 2024.

This week we look at:

• IRS announces a three month Employee Retention Credit Voluntary Disclosure Program
• IRS provides relief from failure-to-pay penalties for 2021 and 2020 taxes for certain situations
• Taxpayer uses the wrong FedEx service, therefore his Tax Court petition was not filed on time

This week we look at:

• FinCEN adds more information to FAQ page, including information on PDF form
• Bill passes House that would give a limited extension of time for some initial BOI reports to be filed
• IRS releases mileage rates for 2024
• Supreme Court agrees to hear estate tax valuation case to resolve split in the Circuits

This week we look at:

• IRS sends out a batch of 20,000 ERC rejection letters
• Employer files suit claiming IRS ERC guidance violated the Administrative Procedures Act
• SCOTUS hears oral arguments in the Moore case
• Draft K-2/K-3 instructions are published with no major changes to the domestic filing exception for 2023

This week we look at:

• FinCEN finalizes extension of due date for initial BOI reports for entities created in 2024
• Tax Court rules that a state law limited partner is not automatically covered by IRC §1402(a)(13) self-employment tax exemption
• OPR due diligence alert on FBAR
• Annual business MeF shutdown date announced
• IRS denies request for automatic accounting method change late election relief
• Tax Court finds that if date to file a Tax Court petition falls on a date that the clerk’s office is inaccessible, the taxpayer qualifies for extended filing relief even though electronic option had been available on the due date

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

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?

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

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

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

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.

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

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

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

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.

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

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

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

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

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

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.

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

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

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

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?

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

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

This week we look at:

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

This week we look at:

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

This week we look at:

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

This week we look at:

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

Copyright, Kaplan, Inc.

This week we look at:

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

Copyright, Kaplan, Inc.

This week we look at:

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

Copyright, Kaplan, Inc.

This week we look at:

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

This week we look at:

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

This week we look at:

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

This week we look at:

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

This week we look at:

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

This week we look at

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

This week we look at:

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

This week we look at:

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

This week we look at:

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

This week we look at:

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

This week we look at:

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

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

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

This week we look at:

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

This week we look at:

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

Copyright 2022, Kaplan, Inc.

This week we look at:

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

Automatic change of accounting method procedure released by the IRS

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

This week we look at:

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

Copyright 2022, Kaplan, Inc.

This week we look at:

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

Copyright 2022, Kaplan, Inc.

This week we look at:

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

Copyright 2022, Kaplan, Inc.

This week we look at:

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

Copyright, Kaplan, Inc.

This week we look at:

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

Copyright 2022, Kaplan, Inc.

This week we look at:

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

Copyright 2022, Kaplan Inc.

This week we look at:

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

Copyright Kaplan, Inc.

This week we look at:

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

Copyright, Kaplan, Inc.

This week we look at

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

Copyright 2022, Kaplan, Inc.

This week we look at:

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

Copyright Kaplan, Inc.

This week we look at:

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

Copyright Kaplan, Inc.

This week we look at:

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

Copyright, Kaplan, Inc.

This week we look at:

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

This week we look at:

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

Copyright Kaplan, Inc.

This week we look at

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

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

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

Copyright, Kaplan, Inc.

This week we look at:

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

This week we look at:

• Proposed Inflation Reduction Act of 2022 - will it pass and what’s in it?
• Taxpayer told by court suit is being dismissed, must file 2020 income tax return to obtain economic impact payment not previously sent to taxpayer
• IRS Security Summit warns tax pros about significant security threats to taxpayer data in their systems

Copyright 2022, Kaplan, Inc.

This week we look at:

• IRS wants preparers to advise clients to opt-in to IP-PIN program.
• TAM holds that an activity that is treated as a material participation activity for five straight years under SPA test will be a material participation activity under the 5/10 test in year 6
• Breadwinner not granted innocent spouse relief when she failed to inquire about or review return prepared by accountant spouse

Copyright 2022, Kaplan, Inc.

This week we look at:

• Reconciliation bill talks stall in Congress
• Taxpayer loses on charitable contribution deduction due to failure to give entire interest and lacking proper acknowledgment for donation to donor advised fund
• Taxpayer not allowed to shorten statute for collections based on shortcomings in own OIC filings
• No reasonable cause for failure to report distribution when 1099-R sent to wrong address

Copyright 2022, Kaplan, Inc.