Federal Tax Update Podcast (general)

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.

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.

This week we look at:

• A California decisions discusses the concept of domicile for state residency status
• IRS publishes special per diem rates for FY 2020/2021, including high-low rates
• Medicaid coverage of COVID-19 testing and diagnostic services is not minimum essential coverage
• Tax Court looks at the effective date for a change in innocent spouse provisions
• An IP PIN ruled not to be part of the signature for an electronically filed tax returns

Copypright 2020, Kaplan, Inc.

This week we look at:

• IRS loses in an attempt to challenge a contribution of closely held stock to charity

• Notice issued giving guidance on retirement plan changes enacted at the end of 2019

• Second new version of Form 941 for 2020 released in draft form

• Minister discovers he won't qualify to be paid social security or Medicare coverage due to not understanding employment taxes and pastors

• IRS publishes web page on BBA Centralized Partnership Audit Regime

Copyright 2020, Kaplan, Inc.

This week we look at:

• Crowdsourcing platform payments made in convertible virtual current for performing microtasks is taxable income
• Payroll tax holiday guidance finally released by Treasury days before holiday is scheduled to begin
• IRS temporarily expands and simplifies use of e-signatures
• SBA issues new PPP guidance with de minimis owner rule and rules related to rents and mortgages as nonpayroll costs

Copyright Kaplan, Inc.

This week we look at:

• Qualified plan loan offset amount proposed regulations issued to deal with TCJA plan loan rollover provision
• US Chamber of Commerce and other organizations issue letter describing issues with payroll tax holiday Presidential memo
• IRS warns employees to wait to file Forms 941-X on second quarter 2020 941s until new form released in late September
• Chair of Ways & Means asks to IRS to pause sending notices that may relate to unopened payments and IRS complies two days later
• IRS begins accepting 2019 amended individual returns electronically
• Payments of interest on 2019 tax refunds are being paid out to taxpayers

Copyright Kaplan, Inc.

This week we look at:

• Summary of §163(j) final regulations SBA publishes PPP loan forgiveness FAQ
• IRS reminds employers of ability to establish leave sharing plans for employees to provide COVID-19 relief
• Proposed revenue procedure released to allow qualified residential living facilities to be §163(j) real estate businesses
• IRS updates qualified plan safe harbor distribution notices for SECURE Act and CARES Act changes
• President issues memorandum providing for deferral of employee OASDI, but leaves open issue of whether amounts will be forgiven

Copyright 2020, Kaplan, Inc.

This week we look at:

• IRS releases multiple regulation project texts on TCJA items
• No syndicate relief offered for tax shelters by the IRS for small business accounting or §163(j)
• Taxpayers informed how to deal with inventory issues when opting out of application of §471(a)
• Forms 3115 for automatic method changes to be faxed in beginning in August

Copyright 2020, Kaplan, Inc.

This week we look at:

• Discussions continue on fourth COVID bill in the Senate
• SBA announces the agency will begin accepting lender's documents for PPP loan forgiveness on August 10 (maybe)
• IRS releases percentages for the premium tax credit for 2021
• IRS position taken for strategic reasons in another conservation easement case doesn't bind the agency in a case with an unrelated taxpayer
• Second Circuit agrees with Tax Court that property was note used in a trade or business

Copyright 2020, Kaplan, Inc.

This week we look at:

• IRS describes letters issued for Form 7200 when various issues arrive
  Loan was nonrecourse since lender did not take route that could have lead to deficiency judgment
• Debt failed to be qualified principal residence interest
• IRS proposes to add Schedules K-2 and K-3 for international partnership issues
• PTIN fees to return next year

Copyright 2020, Kaplan, Inc.

This week we look at:

• W2s will report FFCRA sick and FMLA pay to each employee
• Congress extends PPP loan program through August 8, 2020
• FAQ looks at the tax implications of receiving a CARES Provider Relief Payments
• Depreciation limits for vehicles for 2020 released by the IRS
• §265(a)(1) does not bar deduction under UBIT rules for a charity
• Flowchart for BBA CPAR audit regime published by the IRS

Copyright 2020, Kaplan, Inc.

This week we look at:

• IRS updates FAQ to discuss PPPFA changes to employer payroll tax deferral rules
• Relief granted to allow for changes to be made in 2020 to safe harbor 401(k) plans
• IRS outlines issues with marketing materials for CRAT tax shelter being promoted
• Memorandum discusses what impact a superseded return has on the statute of limitations for returns filed on extension
• IRS announces July 15 deadline will not be extended for 2019 returns

Copyright 2020, Kaplan, Inc.

This week we look at:

• IRS issues clarifications on claiming the employee retention credit

• SBA issues formal interim final rules modifying forgiveness rules for PPPFA

• Additional final regulations issued under §199A

• Proposed regulations released to deal with the TCJA parking lot tax

• IRS announces interest will be paid on refunds for returns filed by 7/15/20, with interest starting to accrue at 4/15/20

Copyright 2020, Kaplan Financial Education

This week we look at:

• Revised PPP forgiveness application and some rules to take into account PPPFA changes
  Relief granted for PPP loan qualification related to certain felony convictions of owners
• CARES special retirement plan provision relief published by IRS
• Using the wrong FedEx service to file a Tax Court petition costs taxpayer the option to challenge the IRS in Tax Court

Copyright 2020, Kaplan Financial Education

This week we look at:

• SBA begins issuing revised guidance to take into account PPPFA changes to PPP loan program
• IRS rules no inclusion in income or payroll tax liability for programs where employees donate leave time to COVID-19 charities
• Proposed regulations would expand deductions for medical expenses
• Post-TCJA real estate like-kind exchange proposed regulations issued by the IRS

Copyright 2020, Kaplan, Inc.

This week we look at:

• Payroll Protection Program Flexibility Act of 2020 enacted into law on June 5, 2020
• Relief from physical presence rules given to qualified plans
• IRS expands Qualified Opportunity Zone relief and extends period for existing relief
• IRS returns to tax basis capital computation issues - gives two different proposed methods

Copyright 2020, Kaplan Professional Education

This week we look at:

• PPP developments - only a single FAQ change but two bills to change the program.
• IRS releases guidance on how to deal with ATNOLs for corporations carrying back net operating losses.
• The ability to electronically file amended individual income tax returns will exist for 2019 returns later this summer.
• IRS announces additional due date relief.

Copyright 2020, Kaplan, Inc.

The latest update on the new interim final regulations on PPP Loan Forgiveness rules.

A PDF with information on both IFRS can be downloaded below.

May 22 IFRs from SBA - PPP Loan Forgiveness

Copyright 2020, Kaplan, Inc.

This week we look at:

• PPP guidance on foreign affiliates, §501(c)(12) utilities, the actual final extension of the PPP repayment date and the SBA backing off the threats on necessity of the loan certification

• IRS discusses which date to use to value certain stock based compensation

• Changes made to maximum medical FSA carryovers for cafeteria plans

• IRS issues COVID-19 related relief for cafeteria plans

• The tax consequences of payments to students discussed in IRS FAQ which uses §139 to exclude them from income

• IRS releases inflation adjusted HSA and HDHP numbers for 2021

Copyright 2020, Kaplan, Inc.

This week we look at:

• IRS changes its guidance on the payment of health insurance only and qualification for the Employee Retention Credit

• Borrowers can repay PPP loans by May 14 and then use Employee Retention Credit in the future.

• SBA issues guidance for non-discrimination rules and not for profits and also impact of student workers.

• Borrowers using new seasonal employer measuring periods will be able to sign unmodified PPP loan applications.

• SBA gives relief to businesses unable to rehire employees who wish to remain on unemployment.

• IRS issues guidance on excess deductions on termination following TCJA's addition of §67(g).

• Taxwriters disagree with IRS's view on deductibility of expenses used to obtain PPP loan forgiveness.

• Cannabis business found to be a reseller and not a producer. IRS issues guidance on taxpayers whom the agency wishes to return their economic impact payments.

Copyright 2020, Kaplan, Inc.

This week we look at:

• PPP loan updates on corporate groups, businesses sold after February 15, 2020, loan review procedures, private companies need to show loan was necessary, treatment of seasonal employers, how to count 500 employees and maximum loan calculation amounts
• Update on faxing procedures for Forms 1139 and 1045
• No deduction allowed for amounts paid to achieve PPP loan forgiveness per IRS
• Draft Form 941 released for second quarter of 2020
• IRS clarifies filing date relief for U.S. Tax Court filings
• IRS and DOL issue relief for certain timeframes that apply to employee benefit plans

Copyright 2020, Kaplan, Inc.

This week we look at:

• PPP Loan program and EIDL Grants Get Additional Funding
• PPP guidance raises question of false certification that loans were necessary, provides other clarifications
• IRS provides additional guidance on payments to repair homes due to pyrrhotite damage
• Relief for taxpayers unable to meet foreign earned income exclusions due to COVID-19
• Special procedures for taxpayers who are not required to file but wish to file for advance payments
• IRS gives special relief related to COVID-19 travel restrictions impacting substantial presence test

Copyright 2020, Kaplan, Inc.

This week we look at:

• SBA issues guidance on self-employed taxpayers and partners for PPP loan program
• Revenue Procedure issued explaining how to deal with retroactive change in life for qualified improvement property
• IRS gives guidance on filing Forms 1139 and 1045 via fax while Service Centers are shut down
• Proposed regulations released to set government portion of PTIN fee at $21
• Procedures issued to deal with Forms 706 returned by private delivery services from closed Service Centers

Copyright 2020, Kaplan, Inc.

This week we look at:

• PPP loan program FAQ gets updated by SBA
• IRS releases §163(j) relief for real estate and farming businesses
• Procedures released for making election to waive NOL carryback period under CARES provisions
• IRS explains the payroll tax deferral program
• Partnerships covered by BBA CPAR given temporary reprieve from centralized audit rules
• Six month extension granted to file Forms 1045 and 1139
• IRS greatly expands list of returns, payments and actions extended to July 15, 2020.

Copyright 2020, Kaplan, Inc.

This week review the status of developing guidance on key provisions of the CARES Act:

• Recovery Rebate for Individuals, Including Advance Payment
• Deferral of the Required Minimum Distributions for 2020
• PPP SBA loan program - things we've learned and things we still need guidance on
• Forgiveness of PPP loans - are payroll costs different for this than for the maximum loan or not? Does anyone know for sure?
• Emergency EIDL Loans - the forgotten provision
• Employee retention payroll credit - the alternative (maybe) to a PPP loan
• Delay of deposits for employer portion of OASDI taxes - can take if you don't have a PPP loan forgiven

Copyright 2020, Kaplan, Inc.

This week we look at:

• Payroll tax credit starts on April 1.
• IRS reverses courses, announces gift/GSTT returns will also be due on July 15, 2020.
• IRS issues guidance that clarifies which April 15 deadlines are moved back to July 15, 2020.
• Congress passes the CARES Act with a number of tax provisions.

Copyright 2020, Kaplan, Inc.

This week we look at:

• Congress passes payroll tax credit for newly mandated paid sick leave

• Initial April 15 delay guidance only delayed payment date but no actual extension to file

• Late Friday guidance replaces first delay guidance with a real delay in April 15 filing date, though questions still remain

Copyright 2020, Kaplan, Inc.