Federal Tax Update Podcast (general)

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.

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.

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

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

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.

This week we look at:

• IRS increases mileage rates effective July 1, 2022
• Taxpayer unsuccessfully asks for relief for failing to file Form 3115

• 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.

• 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.

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.

• 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.

• 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.

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.

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

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

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.

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.

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.

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.

• 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.

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.

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

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

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.

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

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.

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

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

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.

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

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.

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.

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.

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.

This week we look at:

• Two weeks later, Congress is still working on the infrastructure and reconciliation bills
• IRS outlines information requirements for §41 refund claims
• Taxpayer is not getting impermissible double benefit for paying alimony with pre-tax funds
• COBRA extension dates clarified by IRS
• IRS publishes documents regarding reliance on FAQs

Copyright 2021, Kaplan, Inc.

This week we look at:

• Congress is still working on the infrastructure and reconciliation bills
• We get the Tax Court on record for the proper treatment of hobby loss deductions-that is, where they are reported
• IRS to begin charging a fee on October 28 to issue closing letters to estates

Copyright 2021, Kaplan, Inc.

This week we look at:

• Congress is still working on the infrastructure and reconciliation bills
• We get the Tax Court on record for the proper treatment of hobby loss deductions-that is, where they are reported
• IRS to begin charging a fee on October 28 to issue closing letters to estates

Copyright 2021, Kaplan, Inc.

This week we look at:

• Taxpayer has issues with auto expenses, retirement plan contributions and demolition expenses in Tax Court
• Buy-sell agreement that wasn’t followed and was a found as a way to transfer business to brother as a way to escape transfer tax not followed by District Court

Copyright 2021, Kaplan Financial Education

This week we look at:

• Ways and Means Committee finishes markup of proposed new tax bill.
• Language of legal settlement made all of the settlement amount taxable to taxpayer regardless of the fact that payor likely had other reasons to settle
• Taxpayer had reasonable basis to rely upon prior case settlement even though Court found opposite results this time

Copyright 2021, Kaplan, Inc.

This week we look at:

• High low per diem and related guidance for FY 2021/2022 released
• Rules for reporting COVID-19 credit related leave on Forms W-2 for 2021
• Is the client required to amend a return? And, if so, when?

Copyright 2021, Kaplan, Inc.

This week we look at:

• High low per diem and related guidance for FY 2021/2022 released
• Rules for reporting COVID-19 credit related leave on Forms W-2 for 2021
• Is the client required to amend a return? And, if so, when?

Copyright 2021, Kaplan, Inc.

This week we look at:

• High low per diem and related guidance for FY 2021/2022 released
• Rules for reporting COVID-19 credit related leave on Forms W-2 for 2021
• Is the client required to amend a return? And, if so, when?

Copyright 2021, Kaplan, Inc.

This weeks we look at:

• IRS makes permanent its limited e-signature program initiated last year
• Unambiguous plain text in the IRC vs. Congressional intent: how that impacts tax research and professional responsibilities

This week we look at:

• Looking for a trade or business is not itself a trade or business.
• IRS describes a harsh result for taxpayers that make a late deposit of deferred CARES Act FICA

This week we look at:

• Safe harbor guidance for PPP forgiveness and certain grants for reduction in revenue test for ERC
• Auto depreciation limits announced for 2021
• Taxpayers barred from producing evidence letter with no postmark applied was placed in mail by due date by US Court of Claims, even though the Tax Court allows such evidence

Copyright 2021, Kaplan, Inc.

This week we look at:

• This week we look at: IRS issues ERC guidance for 3rd/4th quarter and adds to other guidance - confirms issue for majority shareholders IRS memorandum pushes
• IRS position regarding conservation easement extinguishment clauses
• Best-selling author loses her appeal of Tax Court decision regarding her attempt to split off most of her publishing contract income from self-employment tax

Copyright 2021, Kaplan, Inc.

This week we look at:

• What we know about tax matters in the bipartisan infrastructure bill
• SBA announces direct forgiveness application platform, more PPP changes
• Taxpayer allowed a deduction for expenses related to MBA program
• Paid leave credit expanded to cover more vaccine related issues
• BBA CPAR email notes issues with imputed adjustment calculation
• Second Circuit overturns foreign trust penalty decision in favor of IRS

Copyright 2021, Kaplan, Inc.

This week's sermon is given by Pastor Paul Nelson

The reading for this week is Ephesians 3:14-21.

The Gospel for this week is Mark 6:30-34, 53-56.

Prince of Peace Lutheran Church is located at 3641 N. 56th Street, just north of Indian School Road on 56th Street in Arcadia. For more information about Prince of Peace, visit our website at http://www.popphoenix.org.

This week we look at:

• Taxpayer fails in attempt to use Cohan rule to obtain deductions
• IRS proposes Form 7203 to use by shareholders to report basis in S corporation
• IRS can consider potential recovery against executor as part of offer in compromise
• IRS opens up site for full electronic submission and signing of Forms 2848 and 8821

Copyright 2021, Kaplan, Inc.

This week we look at:

• AICPA reports lenders told to stop pre-forgiveness necessity inquiries
• Digitally signed amended return rejected as not properly filed
• No reasonable cause for late filing when taxpayer depended on attorney who simply took tax money
• IRS position not substantially justified for basis challenge and overall accounting method

Copyright 2021, Kaplan, Inc.

This week we look at:

• TAS declines to accept stand-along advance child tax credit cases
• IRS agent’s tax home remained at his assigned office
• FSA participants required to document qualification of expenses paid with debit card
• IRS explanation of why Forms 1099R don’t identify QCDs
• IRS discusses legal expense deductions

Copyright 2021, Kaplan, Inc.

This week we look at:

• IRS extends special treatment of employee leave donation for COVID-19 relief
• Guidance published on making farm NOL elections
• Penalty relief for issues with 2021 Forms K-2 and K-3
• Supreme Court turns down hearing dispute over taxing out of state employees

Copyright 2021, Kaplan, Inc.

This week we look at:

• SBA reported to be withdrawing PPP loan questionnaires
• Court finds not clear if taxpayer qualifies for home gain exclusion due to unforeseen circumstances
• IRS extends special remote witnessing of signing plan documents through June 30, 2022, may make it permanent
• CPA’s conviction for assisting in the filing of false returns upheld - rejected "I just used what the client gave me" defense

Supreme Court finds no status for challenging ACA due to TCJA changes

IRS backlog was huge at May 1 which causes two pieces of guidance to be issued:

• Do not file Form 990-EZ on paper (unless you want problems)
• Offer in compromise program changes put in place due to backlog

Copyright 2021, Kaplan, Inc.

This week we look at:

• IRS publishes Q & A on 2021’s enhanced child and dependent care credit on website
• Malpractice settlement related to taxpayer’s divorce was taxable to her - and situation made worse to going to Tax Court
• IRS discusses interaction of depreciation related §481(a) adjustments and computation of ATI through 2021

Copyright 2021, Kaplan Financial Education

This week we look at:

• Senate Parliamentarian’s second opinion on reconciliation limits practical use of revision of reconciliation instructions

• Long-time tax CPA who admits not reading Schedule B instructions hit with willful failure to file FBAR penalties

• MoneyGram is not a bank, meaning losses from 2008 financial crisis secured debts were capital losses

Copyright 2021, Kaplan, Inc.

This week we look at:

• Green Book issued to explain administration’s revenue proposals
• Whether or not a 1099 must be issued, income still must be reported
• IRS gives more information about unemployment exclusion and community property states
• TAM looks at lack of “fact of the liability” for all events test dispute

Copyright 2021, Kaplan, Inc.

This week we look at:

• IRS will begin sending out advance child tax credit payments on July 15
• IRS announces simplified method to file a return for those not required to file to qualify for advance payments
• IRS provides Q&A on COBRA premium assistance payments

Copyright, Kaplan, Inc.

This week we look at:

• IRS begins revising returns that reported taxable unemployment and excess APTC
• HSA and HDHP numbers for 2022 released
• Census will not change the boundaries of qualified opportunity zones
• IRS looking to automate submission of power of attorney forms

Copyright 2021, Kaplan, Inc.

This week we look at:

• IRS begins revising returns that reported taxable unemployment and excess APTC
• HSA and HDHP numbers for 2022 released
• Census will not change the boundaries of qualified opportunity zones
• IRS looking to automate submission of power of attorney forms

Copyright 2021, Kaplan, Inc.

This week we look at:

• IRS looks at issues for use of an aircraft by a sole proprietor
• Dividends from controlled C corporation are still part of net investment income under IRC §1411
• IRS allowed to serve John Doe summons on Kraken exchange for information on customers

Copyright, Kaplan, Inc.

This week we look at:

• A quick discussion of what know (little) and don't know (a lot) about not yet proposed changes to capital gain rates
• IRS provides safe harbor for returns filed on or before December 27 for PPP expenses
• IRS issues fact sheet to promote paid leave/family leave payroll tax credit subsidy for vaccine issues
• Deviation allowing for electronic signatures for some forms extended again
• IRS admits to delays in MeF payment processing near April 15

Copyright 2021, Kaplan, Inc.

This week we look at:

• Cover letter from state judge was part of the divorce documents
• PLR discusses medical expense definition
• IRS announces gift tax return due date remained April 15
• Only overpayments existing at April 15 can be applied to quarter one 2021 estimate payment

Copyright 2021, Kaplan, Inc.

This week we look at:

• IRS gives guidance on ARPA and the advance premium tax credit for 2020
• CCA issued to give details on apply tax provisions to hard forks of virtual currency
• IRS disagrees with court decision on treatment of defined benefit pension benefit for insolvency
• A restaurant is defined for 100% deduction
• The saga of 2020 Form 1040 overpayments, extensions and first quarter estimates

Copyright, Kaplan, Inc.

This year week we look at:

• IRS gives details on automatic refunds on unemployment exclusion
• Formal notice of extension of time to file 2020 Forms 1040 issued
• IRS updates ERC guidance for the version for first six months of 2021
• A look at the mess that is the issue of whether controlling shareholder wages can qualify for ERC

This week we look at:

• IRS makes a major change in computation of excludable ARPA unemployment
• PPP loan program applications extended for two months - but funds only likely to last until mid-April without replenishment
• PPE is defined by the IRS to represent medical care for purposes of deducting the expenses

Copyright 2021, Kaplan, Inc.

This week we look at:

• IRS releases instructions on reporting ARPA unemployment exclusion
• AICPA recommends IRS issue clarification on PPP forgiveness/passthrough issues
• IRS pushes back the filing date for Forms 1040 only - everything else still due on April 15, including Q1 2021 estimates

A look at the American Rescue Plan Act of 2021

• Unemployment exclusion for 2020
• Recovery Rebate for 2021
• Prepaid Child Tax Credit for 2021
• Earned Income Tax Credit Changes
• Refundable Dependent Care Assistance
• Sick/Family Leave Credits
• 2021 Employee Retention Credit
• Premium Tax Credit Revisions

Copyright 2021, Kaplan, Inc.

This week we look at:

• Late revisions to PPP loan program
• House passes new COVID-19 relief bill, moves on to Senate
• Taxpayer gets out of tax on $300,000 of credit card rewards
• Texas taxpayers get extension to June 15

Copyright 2021, Kaplan, Inc.

This week we look at:

• A §280E case with potential impact outside of the cannabis industry

• Legal malpractice settlement could not be treated as excludable physical injury award

• IRS admits to an issue with 260,000 notices

• Calls come to extend the April 15 deadline again this year

Copyright 2021, Kaplan, Inc.

This week we look at:

• Taxpayer finds no relief from FBAR penalties
• Tax Court outlines when it will allow a taxpayer to argue substance over form
• IRS warns about a phishing scam aimed at tax professionals

This week we look at:

• Form 1040 final instructions add to virtual currency confusion
• Teachers COVID-19 supply safe harbor released
• No relief for employee with unused FSA dependent care funds
• Form 1099 relief for CARES items not treated as taxable

Copyright 2021, Kaplan, Inc.

This week we look at

• IRS recommendations to those victimized by unemployment ID theft
• Revised Form 7200 gives information on advance ERC payment
• Interim IRS online system to submit Forms 2848 and 8821
• AICPA letter on ERC and PPP forgiveness applications

Copyright 2021, Kaplan, Inc.

This week we look at:

• Penalty relief related to partners’ tax basis capital
• IRS provides limited option for ERC claims on 4th quarter 941
• Revised PPP First Draw Maximum Loan Calculation
• PPP Borrowers Who Received Too Much Have to Pay Excess Back
• Second disbursement for PPP First Draw Loan procedures
• Gross Receipts Calculation for Second Draw Loans
• PPP Revised Forms Released

Copyright 2021, Kaplan, Inc.

This week we look at:

• Amounts advanced by partner were a debt leading to income for other partners
• Auto valuation COVID-19 relief for employers
• Final qualified plan loan offset rules
• Opening of electronic filing pushed back to February 12
• IP-PIN program now open nationwide

Copyright 2021, Kaplan, Inc.

This week we look at IFRs issued for the new PPP Loan programs:

• Interim Final Rule - Revised First Draw PPP Loan
• Interim Final Rule - Second Draw PPP Loan Program

Copyright 2021, Kaplan, Inc.

This week we look at:

• Final small business accounting method regulations issued

• User fee for estate tax closing letter proposed

• 3rd Circuit overrides Tax Court on notice of address change to IRS

• Due dates for claims for refund for 2020 returns

• FinCEN plans to add crypto-currency accounts to FBAR

Copyright 2021, Kaplan, Inc.

This week we are looking the proposed PPP loan revisions

• Proposed COVID-19 Relief Bill
• Reopen and revise PPP loans
• Create second draw need based PPP loan program
• Fix the deduction issue
• Simplified forgiveness applications (2)

Copyright, Kaplan, Inc.

This week we look at:

• IRS issues Q&As on CARES Act §§102 and 103
• Tax organizations respond to IRS Commissioner on no penalty relief
• SBA issues guidance on tax reporting for CARES Act §1112 payments
• SBA adds Q&A on Forms 3509 and 3510

Copyright 2020, Kaplan, Inc.

This week week we look at:

• MFA to be available for all online tax products
• Commuter highway vehicles and COVID-19
• Opt-in IP PIN program going nationwide
• Taxpayer willfully failed to report Swiss bank account

Copyright 2020, Kaplan, Inc.

This week we look at:

• A taxpayer is denied permission to file a late mark to market election as a trader
• Final regulations are issued related to the TCJA unrelated business income changes
• Like kind exchange regulations finalized by the IRS

Copyright 2020, Kaplan, Inc.

This week we look at:

• IRS rules taxpayers cannot deductions expenses that qualify for PPP loan forgiveness if reasonably expect forgiveness
• Revenue Procedure issued for taxpayer who don't get the entire expected forgiveness in the end
• IRS adds request for additional information on Schedules K-1 for Form 1120-S for 2020
• IRS Commissioner indicates there will not any sort of broad relief for late filing and late payment of taxes
• No relief for late filing when CPA firm submitted efile return a few seconds late
• IRS updates ERC FAQ to deal with acquisition of employers who had taken out PPP loans

Copyright 2020, Kaplan Financial Education

This week we look at:

• AICPA reports that the IRS is about to release what many will find is unwelcome guidance on expenses expected to be used for forgiveness under PPP loan program
• IRS gives up on state entity level taxes on passthrough businesses as a workaround to the TCJA limit on the deduction of state and local taxes
• Taxpayer attempts to argue his LLC was acting as an agent for his IRA custodian, but fails to convince the Tax Court

Copyright 2020, Kaplan, Inc.

This week we look at:

• The IRS releases revised tables to compute required minimum distributions from retirement plan accounts - but not until 2022
• Taxpayer denied relief from late filing penalties even though he believed his CPA had filed an extension on his behalf
• IRS publishes news release indicating relief for certain collection related actions due to COVID-19

Copyright 2020, Kaplan, Inc.

This week we look at

• IRS gives guidance to Congressional office on treatment of taxes paid on real estate cooperative
• Guidance issued for W-2s to be issued for employers who deferred employee FICA at the end of 2020
• SBA announces that a questionnaire will be sent to large PPP loan borrowers regarding need for the loan

Copyright 2020, Kaplan, Inc.

This week we look at:

• Fees to enter a daily fantasy sports contest is a wager in the view of the IRS
• Taxpayers must follow all of the criteria listed in Revenue Procedure to take advantage of the ruling
• IRS adds retrieving funds from state unclaimed property fund to list of items for self-certification for late retirement plan rollover
• Withholding is required if an employer sponsored retirement plan transfers funds to state unclaimed property fund
• Draft instructions for 2020 partnerships released outlining requirement to report K-1 capital accounts on tax basis
• CPA denied in attempt to reduce potential liability by claiming failure of another tax adviser in representing client to reduce penalty
• Short term extension granted to October 31 to file FBAR reports

Copyright 2020, Kaplan, Inc.

This week we look at:

• PPP forgiveness application deadline is not October 31

• Fax line to send in Forms 1045 and 1139 will shut down at the end of 2020

• Draft instructions to Form 8895 indicate that IRS not longer seeing charitable deductions as reducing QBI

• Taxpayer could not claim accrued expenses to restore manufacturing line until following year

• IRS FAQ on EIP for incarcerated individuals is subject to court review

Copyright 2020, Kaplan, Inc.

This week we look at:

• Final regulations issued for meals and entertainment
• Withholding on retirement and annuity distribution regulations issued
• S Corporations get special election for GILTI issues
• SBA issues guidance on change of ownership for entities with PPP loans outstanding

Copyright 2020, Kaplan, Inc.

This week we look at

• IRS issues bonus depreciation final regulations
• Excess deductions on termination final regulations are issued
• IRS grants relief for CCH e-filing problems on September 1

Copyright 2020, Kaplan, Inc.

This week we look at:

• IRS discusses options for expedited private letter ruling requests
• Web page for marijuana industry posted by the IRS
• Corporation by law had no shareholders, thus no S election was possible
• Draft form to be used by self-employed to claim COVID-19 sick pay credits published
• Final version of Form 941-X to be used to revised 2Q 2020 Forms 941 released

Copyright 2020, Kaplan, Inc.