Federal Tax Update Podcast (general)

This week we look at:

• Annual Adjustments to Retirement Plan Limitations
• Ensuring Investment Trust Status for Digital Asset Staking Entities
• Examining Penalties in Microcaptive Transactions
• Ownership Requirements for Non-Business Theft Losses
• Defining the Scope of I.R.C. § 172(b)(3) Carryback Waivers

This week we look at:

• Conservation Easement Valuation and Highest and Best Use
• Trust Fund Recovery Penalty (TFRP) Application
• California Residency and Taxpayer Burden of Proof
• OBBBA Information Reporting Transition Relief
• SCOTUS Oral Argument on IEEPA Tariffs
• Conservation Easement Timing and Penalties
• Digital Asset Broker Reporting FAQ Guidance

This week we look at:

• Private Inurement and Operational Failure
• Prevailing Party Status Under § 7430
• The Federal Priority Statute and Corporate Officer Liability
• Termination of the Automatic Stay in Bankruptcy
• Injunction Violations and Civil Contempt for Tax Preparer
• A Refined Approach to Math Error Notices
• Application of Unstated Interest Rules to Corporate Mergers

This week we look at:

• Reevaluating the DC-QIE Exception (FIRPTA)
• Technical Revisions to Revenue Procedure 2025-32
• Transitional Reporting for Qualified Passenger Vehicle Loan Interest (QPVLI)
• Jurisdictional Clarity for TEFRA Readjustment Petitions
• S Corporation Income Attribution and Substantiation Failures
• IRS Operations During a Lapse in Appropriations
• Employee Retention Credit Compliance (OBBBA)
• Form 1099-K Information Reporting Updates

This week we look at:

• Employee Retention Credit Refunds in Bankruptcy
• Lawsuit Settlement Enforcement and Tax Disclosure Obligations
• Operational Test Failure: Commercial Activities and Private Benefit
• IRS E-File Suspension Authority
• Taxation of International Investment Losses
• Collection Due Process Analysis

This week we look at

• IRS Updates PTIN User Fee
• Withdrawal of Corporate Reorganization Proposed Regulations
• IRS FY2026 Shutdown Contingency Plan
• Guidance on Rural Qualified Opportunity Zones
• New Interim Guidance on the Corporate AMT
• Tax Relief Extension for Terroristic Action in Israel
• Final Regulations on Interest Capitalization for Improvements
• Eighth Circuit Reverses Tax Court in 3M on Blocked Income
• District Court Finds § 501(c)(4) Standards Unconstitutionally Vague
• Two Tax Court Opinions in Green (Hobby Lobby)

This week we look at:

• Hobby Loss Rules: Young v. Commissioner, T.C. Memo. 2025-95
• Drought-Forced Livestock Sales: IRS Notice 2025-52
• Per Diem Rates: IRS Notice 2025-54
• End of Paper Refunds: IR-2025-94 / E.O. 14247
• Syndicated Conservation Easements: Jackson Stone South, LLC v. Commissioner, T.C. Memo. 2025-96
• Constructive Receipt & § 4958: Fumo v. Commissioner, T.C. Memo. 2025-97
• Whistleblower Awards: In re: Sealed Case, CA DC, Case No. 24-1001
• Employee vs. Independent Contractor: Gil v. United States, USDC ED PA

This week we look at:

• Final Regulations for Catch-Up Contributions (TD 10033)
• Draft Schedule 1-A (Form 1040) for 2025
• Urgent Warnings of State Revenue Department Phishing Scams
• Tax Court Developments (Blomquist Holdings)
• Proposed Tax Administration Legislation
• New Deduction for Qualified Tips: An Overview of Proposed Treasury Regulation §1.224-1

This week we look at:

• Court Frowns on Professional’s Use of Randomly Generated Social Security Numbers 
• Understanding the “Placed in Service” Rule for Electric Vehicle Credits
• Advisers Found to Owe Treble Damages to Impacted Taxpayers
• W-2 Wages and the Qualified Business Income Deduction Under Section 280E
• Trust Fund Recovery Penalties and Refund Claim Timeliness in Richter v. The United States

This week we look at:

• Eleventh Circuit: Gross Valuation Misstatement Penalty in a Conservation Easement Case
• Treasury & IRS: Preliminary Guidance on Tipped Occupations
• Eighth Circuit: Medtronic Transfer Pricing Dispute Remanded Again
• California OTA: Entertainer Found to be a California Resident
• Pitfalls in IRA Bankruptcy Exemptions: Farber v. Feldman

This week we look at:

• Federal Circuit Ruling Finds Limits on Executive Authority to Impose Tariffs Under IEEPA
• Introduction to OBBBA R&E Expenditure Procedures
• Sixth Circuit Realigns on Tax Court Jurisdiction
• Innocent Spouse Relief: Walsh v. Commissioner Overview
• Taxpayer Precluded from Challenging Liability: Sullivan v. Commissioner
• 60-Day IRA Rollover Waiver in a Fraud Scenario

This week we look at:

• Federal Complaint Seeking ERC Refunds: Superior Pediatric Care v. United States
• Proposed Revisions to Partnership Information Reporting for Sales or Exchanges of Interests—Form 8308
• Taxation of Unsolicited Stock Transfers: Analysis of Feige v. Commissioner
• Third-Party Intent and the Indefinite Assessment Period: An Analysis of Murrin v. Commissioner
• The One, Big, Beautiful Bill Act (OBBBA): New Deductions & Energy Credit Modifications
• LLM Limitations in Tax Law: Beyond Memorization

This week we look at:

• Denham Outlines Its Criticisms of the Tax Court’s Use of the Functional Analysis Test for Limited Partners with the First Circuit Court of Appeals
• Disguised Sales and Sham Partnerships: A Comprehensive Review of PICCIRC, LLC v. Commissioner
• Judicial Examination of State Charitable Tax Credit Programs and Federal Deductibility
• The Second Circuit Clarifies Tax Court Filing Deadlines: Implications for Practitioners
• Understanding New Clean Electricity Credit Termination Rules Impact of IRS Notice 2025-42 on Wind and Solar Facilities

This week we look at:

• Urgent Guidance Requested on Section 174A Domestic Research and Experimental Expenditures
• Post-Referral Authority in Tax Litigation—IRS Lacked Authority to Approve ERC Refund
• Closer This Time, But Still Not Quite There—Another Microcaptive Loss for the Taxpayers
• Proposed Amendments to IRC Section 132 Fringe Benefit Rules: Switching to NAICS
• Understanding Passthrough Losses and Bankruptcy in Field Attorney Advice 20253101F
• Proactive Engagement with the Office of Professional Responsibility
• IRS Announces Policy for the One Big Beautiful Bill Act for 2025 Payroll Issues

This week we look at:

• Filing Season Forecast to Start in Mid-February in the Coming Season
• Settlement Proceeds Found to Be Taxable and Taxpayer Stuck With Late-Filing Penalties
• IRS Issues Relief for Certain Issues Related to Partnership Investments and the Corporate Alternative Minimum Tax
• Corporate Mergers and the Same Taxpayer Rule for Interest Netting
• What Is an Educational Organization for Unrelated Business Income Tax (UBIT) Purposes?
• Another Microcaptive Arrangement Falls Under Court Challenge
• Taxpayer’s Claim She Didn’t Consent to the Filing of a Joint Return Didn’t Impact Denial of Innocent Spouse Relief

This week we look at:

• Understanding 2026 ACA Adjustments
• Substantiating Noncash Charitable Contributions
• Filing Proper Refund Claims
• 2026 Employer Shared Responsibility Payments (ESRP)
• Changes to IRS LB&I Tax Examinations

This week we look at:

• Conservation Easement Deductions: A Critical Review of Rock Cliff Reserve, LLC
• Portability Election Pitfalls: A Deep Dive into Estate of Rowland and DSUE Requirements
• Understanding Equitable Tolling in Tax Court: Insights from Boechler, P.C. v. Commissioner
• A Critical Review of Veribest Vesta, LLC v. Commissioner of Internal Revenue: Implications for Conservation Easement Valuations
• Understanding Withholding and Reporting for Uncashed Retirement Plan Distribution Checks: A Review of Rev. Rul. 2025-15
• Fifth Circuit Affirms Tax Court’s Disallowance of Micro-Captive Insurance Deductions: An Analysis of Swift v. Commissioner

This week we look at:

• Recent Developments: Interpreting the Johnson Amendment in Tax-Exempt Status Litigation

• An Examination of Contract Formation in Tax Court Settlement: Insights from Arden Row Assets, LLC

• Jurisdictional Imperatives in Tax Court: A Case Study on Timeliness and Last Known Address

• Expanding Horizons: Potential Changes to Disaster Tax Relief Under the Filing Relief for Natural Disasters Act

This week we look at:

• Bad Debt Deduction and Accuracy-Related Penalties: Key Takeaways from Anaheim Arena Management, LLC v Commissioner
• FBAR Compliance and the CPA’s Due Diligence Under Circular 230
• Dissecting Partnership Audit Limitations: Insights from JM Assets, LP v. Commissioner
• Decoding Penalty Assessments: A Deep Dive into Moxon Corporation v. Commissioner
• Tax Court Scrutiny: Upholding Civil Fraud Penalties in Beleiu v. Commissioner

This week we look at:

• Court Upholds IRS’s Employee Retention Credit Guidance
• Taxpayer Files in US District Court as the IRS’s Failure to Act on its Appeal Was Causing the Statute of Limitations to Run Out
• IRS Updates K-2 and K-3 Filing Requirements FAQ, Expands Exceptions to Filing
• Taxpayer Advocate Releases Fiscal Year 2026 Objectives Report to Congress
• Trust Fund Recovery Penalties: A Case Study on "Responsible Person" and "Willfulness" Under 26 U.S.C. § 6672

This week we look at:

• Schwartz v. Commissioner: The Critical Role of Estimated Tax Compliance in Collection Due Process Determinations
• Cano v. Commissioner: Validity of Notice of Deficiency and Address Errors
• Key Differences Between House and Senate Tax Provisions in Reconciliation Process to Date

This week we look at:

• Understanding Automatic Accounting Method Changes-Revenue Procedure 2025-23
• Accounting Method Changes in Conmac Investments, Inc.
• Conservation Easements in Glade Creek Partners, LLC
• Tax Treaty Exemptions in Kramarenko v. Commissioner
• Tax Refund Litigation & Variance Doctrine in Shleifer v. U.S.
• Tax Court Jurisdiction in Commissioner v. Zuch
• Digital Asset Reporting & Withholding in Notice 2025-33

This week we look at:

• Navigating Corporate Alternative Minimum Tax (CAMT)
• Conservation Easement Valuation & Penalties: A Warning from Tax Court
• Collection Due Process (CDP) & Offers in Compromise (OICs): Lessons from Tax Court
• Accuracy-Related Penalties: Navigating Negligence and Insufficient Professional Reliance
• Understanding Treasury’s Request for Information on Modernizing Federal Payments
• Worthlessness vs. Discharge: A Ninth Circuit Examination of Bad Debt Deductions Concurrent with COD Income

This week we look at:

• Self-Employment Tax for Limited Partners (Soroban II)
• Presidential Tariffs Under IEEPA (USCIT Decision & Federal Circuit Stay)
• Massachusetts Source Income (Welch Case Petition)
• Foreign Gift Penalties (Huang Case)

This week we look at:

• IRS Reduces Estate Tax Closing Letter Fee
• Tax Court Scope of Review in Passport Cases
• Marital Deduction for Bequests to Trust
• “Reasonable Cause” in Late-Filing Penalty Cases
• “No Tax on Tips Act” (S.129) Passes Senate
• Transfer Pricing in Facebook, Inc. & Subsidiaries v. Commissioner
• Navigating New York’s Convenience Rule: Insights from Matter of Zelinsky

This week we look at:

• Deductibility of IVF and Gestational Surrogacy Costs
• Fraudulent Tax Claims & 28 U.S.C. § 2514
• Tax Collection Suits & Statute of Limitations in United States v. Ragen
• Moving Expense Deduction - Civilian Department of Defense Contractor Eligibility
• Tax Court Jurisdiction - The 90-Day Deadline for Deficiency Petitions

This week we look at:

• Navigating the Overlap: Civil Tax Assessments and Criminal Restitution Orders
• Navigating Innocent Spouse Relief: A Look at Salvi v. Commissioner
• Supreme Court Weighs Tax Court Jurisdiction in Levy Disputes After Tax Payment: A Deep Dive into Commissioner v. Zuch
• Navigating ERISA Prohibited Transaction Claims: Insights from Cunningham v. Cornell University

This week we look at:

• Navigating the 90-Day Deadline for Employment Tax Redeterminations: The Belagio Fine Jewelry, Inc. Case and Equitable Tolling
• GWA, LLC v. Commissioner: Substance Over Form and the Nuances of Tax Elections for Disregarded Entities
• Notice 2025-23: Treasury and IRS Signal Withdrawal of Basis Shifting TOI Regulations and Related Penalties
• Hobby Loss and Failure to File: A Deep Dive into Himmel v. Commissioner

This week we look at:

• Massachusetts Source Income and the Sale of Stock by a Nonresident
• Navigating the Valuation Landscape: Insights from Pierce v. Commissioner
• Personal Liability for Corporate Sales and Use Tax: An Analysis of Matter of the Appeal of B. Wageman
• Navigating the IRS’s ERC Claim Processing Moratorium and "Risking" Procedures
• Jurisdictional Prerequisites in Tax Refund Suits: A Case Study of Estate of Robert F. Armitage, Deceased v. The United States
• Dependency Claims and Child Tax Credits: A Look at Correll v. Commissioner
• WT Art Partnership LP v. Commissioner: Charitable Contribution Deductions and Valuation Pitfalls
• Zajac v. Commissioner: Disallowance of Numerous Deductions and Upholding Penalties
• Hampton v. Commissioner: Public Policy and Disallowance of Shareholder Loss Deduction
• Revised SIFL Rates for Valuation of Noncommercial Flights: Revenue Ruling 2025-9
• IRS Provides Limited Penalty Relief for Certain Micro-Captive Disclosure Statements
• The Demise of DeFi Broker Reporting: An Analysis of H.J. Res. 25

This week we look at:

• Ranch Springs, LLC v. Commissioner: A Case Study in the Valuation of Conservation Easements and the Pitfalls of Aggressive Tax Planning
• The Duty of Consistency Prevails: A Case Study in Innocent Spouse Relief and Subsequent Asset Claims
• Navigating the Murky Waters of Investment Tax Credits and Passive Activity Rules: A Deep Dive into Strieby v. Commissioner

This week we look at:

• Tax Court Finds Taxpayer Failed to Provide a Qualified Appraisal, No Charitable Deduction Allowed
• Estate Found Liable for $2 Million FBAR Penalty That Applied to the Decedent
• Taxpayers Filing Court Challenges to Attempt to Obtain Employee Retention Tax Credits
• Fourth Circuit Overturns Trial Court’s Grant of Summary Judgment to the Government, Finding True Issue of Fact Exists Regarding Whether Statute Remained Open
• IRS Memorandum Discusses When a Taxpayer Can Claim a Deduction as Victims of Various Scams Under Current Law

This week we look at:

• Treasury and the Corporate Transparency Act (BOI Reporting)
• Martino v. Commissioner: Alimony Deduction Case
• Estate of Kalikow v. Commissioner: Estate Tax & Settlement Payments
• Appeal of A. Markowski: California Source Income for Nonresidents
• CF Headquarters Corporation v. Commissioner: Taxability of Grants
• United States v. Gora: IRS Levy Enforcement

This week we look at:

• FinCEN Announcement on BOI Reporting Penalties
• Tax Court Case: Alan Hamel and Estate of Suzanne Hamel v. Commissioner
• IRS “Dirty Dozen” Tax Scams for 2025
• IRS Adds Tax Documents to Online Accounts
• Ways and Means Committee Passes Disaster Relief Bills
• House and Senate Budget Resolutions

This week we look at:

• Second Circuit Rules on Section 179D Deductions and Accounting Method Change
• IRS Guidance on ACA Notice Posting
• Court Case on CPA Negligence and Trust Return Penalties
• BOI Reporting Requirement Updates

This week we look at:

• Deductibility of Losses: Weston v. Commissioner
• Conservation Easements: Green Valley Investors LLC
• Automobile Depreciation and Lease Inclusion
• S Corporation Inadvertent Termination Relief
• Corporate Transparency Act (CTA) - Government Briefs
• House Ways & Means Committee Tax Bills

This week we look at:

• IRS issues letter ruling on IRA left to trust
• A taxpayer mistakenly believes the IRS had conceded that his income was not subject to self-employment tax, but it hadn’t
• The Tax Court denies a taxpayer’s deductions and claimed partnership losses due to incredibly disorganized and inadequate records
• Taxpayer runs afoul of the “pay first, litigate later” rule when attempting to sue the IRS for a refund in US District Court in response to an assessment
• A taxpayer’s unprocessed claim for an ERTC refund doesn’t justify CDP relief
• The BOI - new Administration continues litigation and proposes a new due date, potential filing relief

This week we look at:

• Tax Court Finds Property Donated to Charity Had a Value Less than One-Third of What Taxpayers Claimed on Return
• IRS Finds Most Expenses Related to Taxpayers’ In Vitro Fertilization and Surrogacy Will Not Be Deductible Medical Expenses Under IRC §213
• Taxpayer Denied Innocent Spouse Relief in Tax Court Bench Opinion
• Tax Court Finds No Issue With the Appeals Office Structure and Staffing
• Failure to Provide Proof of Filing of Returns Fatal to Taxpayer’s Attempt at Obtaining Relief in CDP Hearing Despite IRS Procedural Errors

This week we look at:

• Funds Taken By Sheriff Were a Valid Loan and Not Income from Embezzlement
• Tax Court Allows a Reduced Deduction for a Conservation Easement
• CCA Discusses Issues with Activities of a Private Foundation with Regard to Self-Dealing, Attempted Correction and Jeopardizing Investments
• IRS Email Discusses Agency’s (Lack of) Obligation to Process Amended Tax Returns
• Supreme Court Reverses Fifth Circuit Merits Panel, Again Removes Emergency Injunction Against Enforcement of the CTA
• BOI Reports Despite Supreme Court’s Action on Texas Top Cop Shop, Inc. Ban on Enforcement of BOI Reporting, FinCEN Notes Ban on Enforcement Under the Smith Case is Still in Effect

This week we look at:

• IRS updates residential energy credit Fact Sheet, adds details about the PIN requirements that take effect for 2025 property
• Proposed regulations on catch-up contributions added by the SECURE 2.0 Act
• Proposed regulations on the automatic enrollment provisions of IRC §414A
• US Supreme Court agrees to review a Third Circuit ruling on Tax Court jurisdiction in a Collection Due Process case
• IRS issues final regulations on resolution of tax controversies by the IRS Independent Office of Appeals Under TFA of 2019

This week we look at:

• IRS Grants Tax Relief to California Wildfire Victims
• National Taxpayer Advocate’s Report to Congress and Legislative Recommendations Released
• Third US District Court Issues BOI Reporting Injunction
• Tax Court Finds a Building Was Not a Certified Historic Structure as Defined by §170(h)
• Taxpayer Denied Refund as Court Found the Taxpayer Had Taken the Position That Its
• Reporting Was an Error Rather Than a Method of Accounting
• Seventh Circuit Upholds Imposition of Fraud Penalty for an Overstatement of Withholdings
• Court Finds Taxpayer Submitted Digitally Altered False Documents, Sustained the Fraud Penalty the IRS Proposed
• IRS Updates Guidance on Section 530 Employment Tax Liability Relief

This week we look at:

• IRS gives relief for specific identification of digital asset basis for certain taxpayers for 2025 only
• Department of Justice asks the U.S. Supreme Court to Stay the Latest Corporate Transparency Act Injunction
• IRS no longer to dispute requirement to comply with APA to add listed transactions after the enactment AJCA in 2024
• Tax Court rules that merely being in a registered historic area does not make a building a certified historic structure
• Tax Court finds taxpayer owes tax on over $5.3 million diverted from two retirement plans

This week we look at:

• Automatic accounting method changes related to §174 extended to years beginning in 2024
• BOI report - hectic week, but ultimately no resolution yet for initial report due date
• 2025 mileage rates published by the IRS
• IRS finalizes regulations on supervisory approval of penalties
• IRS proposes revisions to Circular 230

This week we look at:

• President signs the two tax bills Congress recently passed
• DOJ asks for stay of injunction issued by US District Court in Texas on enforcement of the CTA
• IRS expands Business Tax Account access and services that can be accessed via that account

This week we look at:

• Congress enacts two tax laws: but neither is the big one that passed the House in January but stalled in the US Senate
• A Texas US District Court has issued a nationwide temporary injunction barring FinCEN from enforcing the BOI reporting regime
• DOJ files a notice of Appeal of the Texas Top Cop Shop Inc decision and FinCEN posts information regarding the impact of the case on BOI reports

This week we look at:

• IRS releases optional form taxpayer can use to make an IRC §83(b) election
• IRS extends for one year more a transitional 45-day period to perfect research credit claims found to be invalid claims
• IRS provides additional relief on the issuance of Forms 1099-K

This week we look at:

• IRS announces program using IP-PIN to allow taxpayers who find a dependent on their return has already been listed on another to get their return processed immediately
• The ERC Second Voluntary Disclosure Program ends but the IRS gives some additional relief for withdrawing a claim filed via third-party payer such as a payroll service

This week we look at:

• IRS may stop putting “taxpayer may rely” statements on proposed regulations
• Tax Court rules partnership basis calculations are cumulative in nature and not stand-alone annual calculations under IRC §705 
• Latest speculations on what will get through Congress in 2025 - if anything

This week we look at the rules involving the reconciliation process in Congress, the path that it appears most likely any tax bill enacted to deal with the expiration of many TCJA provisions at the end of 2025.

This week we look at:

• Retirement plan limits announced by the IRS, basically completing the tax inflation adjustments for 2025
• IRS emailed Chief Counsel Advice outlines dealing with SECA and the net investment income tax issues arising from a BBA partnership exam

This week we look at:

• IRS releases inflation adjusted numbers for most items aside from retirement plans for 2023
• IRS has more bad news for those who fail to pay over trust fund taxes to pay other expenses
• Another US District Court denies a preliminary injunction to bar enforcement of the BOI reporting rules

This week we look at:

• S corporation finds multiple ways to terminate its S status, asks IRS forgiveness which is granted
• IRS rules condoms are medical expenses for tax purposes
• IRS adds items to list of preventive care an HDHP can pay without the insured having met the annual deductible
• PTIN registration opens for 2025
• Staking income challenge returns to court

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