Federal Tax Update Podcast: Recent Episodes
The Ohio Society of CPAs
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:
- IRS announces a three month Employee Retention Credit Voluntary Disclosure Program
- IRS provides relief from failure-to-pay penalties for 2021 and 2020 taxes for certain situations
- Taxpayer uses the wrong FedEx service, therefore his Tax Court petition was not filed on time
This week we look at:
- FinCEN adds more information to FAQ page, including information on PDF form
- Bill passes House that would give a limited extension of time for some initial BOI reports to be filed
- IRS releases mileage rates for 2024
- Supreme Court agrees to hear estate tax valuation case to resolve split in the Circuits
This week we look at:
- IRS sends out a batch of 20,000 ERC rejection letters
- Employer files suit claiming IRS ERC guidance violated the Administrative Procedures Act
- SCOTUS hears oral arguments in the Moore case
- Draft K-2/K-3 instructions are published with no major changes to the domestic filing exception for 2023
This week we look at:
- FinCEN finalizes extension of due date for initial BOI reports for entities created in 2024
- Tax Court rules that a state law limited partner is not automatically covered by IRC §1402(a)(13) self-employment tax exemption
- OPR due diligence alert on FBAR
- Annual business MeF shutdown date announced
- IRS denies request for automatic accounting method change late election relief
- Tax Court finds that if date to file a Tax Court petition falls on a date that the clerk’s office is inaccessible, the taxpayer qualifies for extended filing relief even though electronic option had been available on the due date
This week we look at:
- IRS clarified FAQ on §139A and backpay for wrongfully incarcerated members of the armed services
- FinCEN adds to the FAQ on beneficial ownership information reporting
This week we look at:
- Inflation adjusted numbers for 2024 issued by the IRS
- Minor revisions made in final BOI FinCEN Identifier rules
- The IRS issues its second ERC-related GLAM, this time taking aim at OSHA related partial shutdown theories
- If a Notice isn’t binding on the courts, does that mean we can just pretend it doesn’t exist when advising our clients?
This week we look at:
- 2024 inflation adjusted retirement numbers released by the IRS
- MeF 1040 shutdown date announced by the IRS
- Trust found liable for transferee tax in failed Son-of-BOSS shelter to offset stock sale gain
- IRC §41 refund claim grace period extended for yet another year
- Tax Court refuses to expand equitable relief for missing 90-day deadline to file petition
This week we look at
- Taxpayers can’t rely on paid preparer as reasonable cause for late filing, even when using electronic filing
- IRS could assert negligence penalty (and obtain supervisory approval) after failing to obtain approval for substantial underpayment penalty
- IRS makes “temporary” electronic signature program permanent by moving it into the Internal Revenue Manual
This week we look at
- PTIN renewals are now open for 2024
- IRS announces program to allow for withdraw of ERC claims
- Actor’s estate loses in attempt to claim he had validly rolled over a non-traditional investment held in his IRA
This week we look at
- Sloppy records cost CPA the vast majority of his business deductions
- IRS issues warning about art deduction tax promotions aimed at high-income taxpayers
- IRS gives details on transfers of electrical vehicle credits to dealers beginning in 2024
Copyright 2023, Kaplan, Inc.
This week we look at:
- IRS reduces PTIN fees substantially
- Wash sale rules do not apply to losses on disposition of money market funds
- IRS highlights new capabilities added to TaxPro accounts
- Employers can set up leave-based donation programs for 2023 Hawaii wildfire relief
- FinCEN grants 60 additional days for entities created in 2024 to file initial reports
This week we look at:
- FinCEN provides guide to small businesses for beneficial ownership reporting under the Corporate Transparency Act
- Taxpayer cannot rely on the mailbox rule to prove timely mailing/filing of tax return, as §7502 is the sole way of proving timely postmark and get presumption of delivery
- Impact of receipt of a CP2100/2100A notice on backup withholding
This week we look at:
- Just having a CPA prepare a taxpayer’s return does mean the taxpayer will get reasonable cause relief for assessments
- IRS announces halt to processing of new ERC claims until after 2023, will slow processing of claims currently in progress
This week we look at:
- IRS make last minute change to K-2/K-3 FAQ for 2022 returns
- Preliminary guidance for §174 changes made in TCJA that took effect in 2022 issued by the IRS
Copyright 2023, Kaplan, Inc.
This week we look at:
- HHS sends letter to DEA recommending that marijuana be reclassified as a Schedule III drug
- General guidance issued determining tax status of 2023 state payments - and IRS asks for comments prior to giving additional guidance
- IRS clarifies limits of 2007 CCA on ESBTs and NOLs
- News release on electronic filing of Form 8300
This week we look at:
- Proposed regulations issued for digital asset broker reporting on Form 1099-DA
- IRS delays requirement for high income employees to make employer plan catch-up contribution to designated Roth accounts until plan years beginning after December 31, 2025
- 2024 health care premium tax credit percentages published by the IRS
This week we look at:
- Limited relief likely coming for beneficial ownership reporting
- IRS being challenged in an attempt to treat state law limited partners as receiving SE income
- Rent your home to your business for 13 days each year plan mainly failed
- Advance memo states IRS objection to a marketed trust tax avoidance plan
- IRS memo explains credit unions can only claim COVID ERC on 2021 wages
This week we look at:
Deduction for non-qualified deferred compensation not accelerated for the seller when the liability is transferred to the buyer of a business
Tax professionals and taxpayers warned about issues with certain employee stock ownership plan (ESOP) arrangements
Reduction of non-recourse debt amount was added to sales proceeds, not a cancellation of debt so no §108 relief was available
This week we look at:
- IRS rules cryptocurrency staking rewards are taxable when taxpayer obtains dominion and control
- Interim guidance issued for home energy audit tax credit under IRC §25C added by IRA 2022
- Proposed regulations issued to add monetized installment sales to listed transactions
This week we look at:
- Oversight Subcommittee of House Ways & Means Committee holds a hearing on ERC issues, discusses potential amnesty program
- IRS ending most announced revenue officer visits
- Taxpayer finds out that there may very well be a tax consequence when you borrow against your life insurance policy and then let the policy lapse
This week we look at:
- IRS memo makes it clear the agency is very skeptical about extended supply chain ERC claims
- Third Circuit rules that equitable relief is available for failure to file Tax Court petition in 90 day period for a deficiency
- IRS asked by Tax Court to justify suspense account method for losses deducted in excess of basis in closed years
- Taxpayers had to pay tax on funds taken from IRA/pension funds that were paid to fraudster
The IRS looks at:
- IRS extends SECURE Act inherited IRA RMD relief for one additional year, adds special rollover rule for those born in 1951 due to SECURE 2.0 Act changes
- IRS grants relief to victims of Vermont flooding.
- Failure to attach simple election leads to requesting (and paying for) 11 separate private letter rulings
Copyright 2023, Kaplan, Inc.
This week we look at:
- S corporation loses on research credit claim and gets hit with penalties - risks of a credit study
- Exempt organization status denied for organization formed to raise funds for one person’s medical bills
- Discussion of tax research hierarchy in this short week
This week we look at:
- Supreme Court takes on §965 transition tax case for upcoming term: what do we do to protect our clients?
- The IRS releases draft versions of key 2023 partnership income tax returns
- Firefighter’s sexual harassment complaint settlement was not excludable from income
This week we look at:
- IRS ends COVID-19 relief for high deductible health plans effective for plan years ending after 12/31/24
- Taxpayer fails in attempt to get IRS permission to make a late §475(f) mark to market election
- Taxpayer who filed Tax Court petition 11 seconds too late due to technology challenges has petition dismissed
- Sherlock Holmes on tax research
This week we look at
- OIRA is no longer going to review IRS regulations before issuance
- IRS updates list of automatic accounting method changes
- Proposed regulations issued on transfers of certain energy credits and DirectPay for certain credits
- What can go wrong with an employee retention credit refund claim?
This week we look at:
- 3 proposed tax bills introduced by Chair of House Ways & Means Committee
- Wellness indemnification payment is taxable income to employee and subject to payroll taxes
- IRS grants request to make election to skip claiming bonus depreciation when partnership discovers claiming bonus is bad news at the state level for certain partners
This week we look at:
- Fourth Circuit does not agree with view expressed by Seventh Circuit in Menard, Inc. that C corporation reasonable compensation only depends on a reasonable return to investors
- Eleventh Circuit holds that “hobby loss” expenses under §183 are miscellaneous itemized deductions
- Elderly attorney had reasonable cause for failure to file payroll tax returns and timely pay payroll tax liabilities
This week we look at:
- Tax Court finds they have no authority to review the IRS notice for certification of seriously delinquent tax debt to State Department
- IRS publishes warning signs for employers to use to identify ERC scams
- Fourth Circuit finds that Section 7502 fully supplants common law mailbox rule for filing documents
This week we look at:
- Supreme Court rules in favor of IRS on issue of when notice must be sent when the IRS issues a third-party summons
- IRS agent gets distracted by small issues, fails to investigate potentially much larger one and it costs the IRS at Tax Court
- IRS announces 2024 HSA and excepted benefit HRA inflation adjusted amounts
This week we look at:
- IRS email discusses issues that arise with payroll tax refunds when a PEO is involved who itself has unpaid tax liabilities
- Letter ruling provides that Forms 1099-C must be filed by a credit union due to writing off certain debts as part of a legal settlement
- IRS plans to add more detail to partnership K-1 liability disclosures on 2023 returns
This week we look at:
- IRS issues CCA making clear how strict the §125 substantiation rules are
- Taxpayer’s lack of documentation forces him to accept preparer’s gross gambling winnings and limits his gambling loss deduction
- Tax Courts finds that last second rule for filing a Tax Court petition is not the same as for returns filed via eFile
Copyright, Kaplan, Inc.
This week we look at:
- Another taxpayer fails to establish either spouse as a real estate professional
- SPIFF was not a separate trade or business
- IRS releases revised Form 3115
- IRS letter to Senator on PEOs and ERC
- FinCEN publishes FAQ on Corporate Transparency Act reporting
Copyright, Kaplan, Inc.
This week we look at:
- IRS announces non-acquiescence in Tax Court case on taxpayer asserting substance over form
- IRS highlights bad tax advice on social media
- IRS rules that assets held in intentionally defective grantor trust do not obtain date of death basis
- IRS releases proposed battery regulations for new EV credits
Copyright, Kaplan, Inc.
This week we look at:
- IRS begins 2023’s Dirty Dozen Tax Scams with problematical ERC refund claims
- IRS announces position on evaluating when a non-fungible token is a collectible
- C corporation not allowed to take home office expenses for owner-employee’s home
- IRS email reminder that BBA opt-outs must be made on original returns
This week we look at:
- Trust that was meant to be a CRAT found not to be one and attempted fix was too late and not undertaken correctly
- PLR looked at whether item for consumption by infant to reduce risk of developing a condition was all or partially a medical expense
- IRS produces FAQ on whether different types of health expenses qualify as medical expenses
This week we look at:
- IRS and OPR issue separate warnings on ERC claims
- Ninth Circuit reverses Seaview Holdings LLC decision after en banc hearing, partnership return not forwarded to Ogden was never filed
- IRS gives financial institutions RMD notice relief
- S corporation accidentally ended its status by revising its LLC operating agreement
This week we look at:
- Deposit and use by sheriff of jail meal money not found to be a mere misunderstanding
- Amounts taxpayer expected to repay with future earnings found not to be loans, taxable upon receipt
- SCOTUS rules non-willful FBAR failure is a per-form not per-account penalty
- CPA fails to provide substantiation for deductions for practice
This week we look at:
- Proposed regulations issued for retirement plan forfeitures
- OIRA completes review of crypto broker proposed regulations, expected to be issued shortly
- IRS extends relief for taxpayers impacted by disasters in California, Alabama and Georgia
- IRS issues final business electronic filing mandate regulations
This week we look at
- IRS announces program to accept upload of documents in response to some, but not all, notices to taxpayers
- SECURE 2.0 Section 603 drafting glitch puts catch-up contributions at risk for 2024 as various parties push to get a fix
- IRS will not automatically challenge §199A deduction for cannabis businesses-but W-2 wage problems may get in the way
This week we look at:
- IRS relents to pressure, releases guidance on state payment programs’ taxability (generally it’s good news)
- IRS begins offering direct deposit for Form 1040-X electronic filers - but it will still take a long time to process
- No substantive §174 guidance likely before initial tax deadlines (March & April)
- Form 4868 didn’t qualify as informal claim for refund
This week we look at:
- IRS revises classification of clean vehicles for purposes of determining vehicles subject to $80,000 MSRP limit
- Proposed revenue procedure published to establish new voluntary tip reporting procedure
- Taxpayer’s log of every mile of vehicle use had issues that prevented Tax Court from accepting it for meeting burden under IRC §274(d)
This week we look at:
- IRS begins accepting 2022 income tax returns
- IRS opens up IRIS portal for electronic filing of information returns
- Corporation forced to get private letter ruling on S election due to failure to obtain all required consents
This week we look at:
- IRS provides an extended due date for some in Alabama and Georgia impacted by storms
- IRS announces 10 minute response time on Practitioner Priority Line
- Taxpayer’s §401(k) distribution not excluded from income based on diabetes diagnosis
- IRS releases auto depreciation limits under §280F for 2023
This week we look at:
- IRS begins accepting returns on January 23
- California taxpayers get due dates delayed until May 15
- Amended return research credit additional information requirements added to draft Form 6765 instructions
- Employer provided housing not excluded from income under §119
- No loss allowed on not quite worthless not really stablecoin
- Appraisals required for donation of cryptocurrency
Congress passed the SECURE 2.0 Act of 2022 that was signed into law on December 29, 2022. This program gives a brief overview of the provisions of this Act that will help tax professionals advise their clients about the impacts and opportunities found in this law.
This week we look at:
- IRS to issue regulations for definitions for new clean vehicle credit
- List published on IRS website to assist in determining if a vehicle could qualify for new clean vehicle credit
- Incremental cost safe harbors for §45W commercial clean vehicle credit issued by IRS
- 2023 mileage rates release
- Final 2022 Schedule K-2 and K-3 Form 1065 instructions released
This week we look at:
- Congress passes spending bill which included SECURE 2.0 Act of 2022
- Final Schedules K-2 and K-3 instructions issued for Form 1120S
- IRS delays digital asset reporting until regulations are issued
- Expanded Form 1099-K reporting delayed for one year by the IRS
Copyright 2022, Kaplan, Inc.
This week we look at:
IRS memorandum looks at marketed program to defer recognition of legal fees
Automatic change of accounting method procedure released by the IRS
IRS publishes news release on upcoming FICA/SE tax 2020 deferral payment due date
This week we look at:
- IRS releases second draft of instructions for preparing 2022 Schedules K-2 and K-3 for partnerships and S corporations
- IRS begins issuing proposed regulations to deal with court losses on method used to add listed transactions not following the Administrative Procedures Act
Copyright 2022, Kaplan, Inc.
This week we look at:
- IRA 2022 prevailing wage and apprenticeship requirement guidance issued by the IRS
- Taxpayers denied partnership loss due to a large number of issues, many of which were enough standing alone to deny the loss entirely
Copyright 2022, Kaplan, Inc.
This week we look at:
- Damage award found to not be for physical injuries, entire amount taxable
- Partnership language in LLC operating agreement revision terminated S corporation status (creating a C corporation)
- Taxpayer failed to wait required 6 months for IRS to act on refund claim before filing suit
Copyright 2022, Kaplan, Inc.
This week we look at:
- IRS news releases this week on:
- Qualified charitable distributions
- Seventh Annual National Tax Security Awareness Week
Copyright, Kaplan, Inc.
This week we look at:
- Tax Court finds that adding to listed transactions requires IRS to comply with Administrative Procedures Act
- Election results and likely tax actions in lame duck session
- What about next year with the new Congress?
Copyright 2022, Kaplan, Inc.
This week we look at:
- IRS releases Form 1120-S Schedule K-2 and K-3 draft instructions with similar exceptions to Form 1065 version
- IRS gives some indication on when §174 guidance will come out
- Tax benefits alone not enough to establish taxpayer had a profit motive in solar lens leasing business
- IRS grants late rollover relief to victim of fraud
Copyright 2022, Kaplan Inc.
This week we look at:
- It’s PTIN renewal time again and the IRS has released a news release announcing the fact
- IRS publishes draft 2022 Form 1065 Schedules K-2 and K-3 instructions with revised exceptions to filing Schedules K-2 and K-3
Copyright Kaplan, Inc.
This week we look at:
- IRS announces and appears to roll out pilot program to block automated calling systems
- 2023 inflation adjusted general tax amounts released by the IRS
- Retirement/IRA limitations released for 2023
Copyright, Kaplan, Inc.
This week we look at
- AICPA writes the IRS again on issues with PTET taxes
- SECURE Act Proposed Regulations RMD rules for inherited accounts in pay status effective date delayed
- IRS releases S corporation relief guidance
- AICPA Tax Section fact sheet on the employee retention credit
Copyright 2022, Kaplan, Inc.
This week we look at:
- FinCEN releases final regulations that will require beneficial owner reporting for small LLCs and corporations
- IRS updates FAQ for state and local fiscal recovery funds used for home purchases
- Hurricane Ian relief announced by Treasury, delays most filings to February 15, 2022
Copyright Kaplan, Inc.
This week we look at:
- IRS issues reminder on penalty relief deadline that makes some modifications
- IRS publishes another news release pushing the CCA on improper PPP loan forgiveness
Copyright Kaplan, Inc.
This week we look at:
- IRS memorandum states that PPP loan forgiveness is taxable if taxpayer did not actually qualify for forgiveness granted
- AICPA adds to items requested for additional penalty relief under Notice 2022-36
Copyright, Kaplan, Inc.
This week we look at:
- Chair and Ranking Member of the Senate Finance Committee send Enhancing American Retirement Now (EARN) Act to the Senate floor
- IRS inadvertently makes Form 990-T data on non-§501(c)(3) organizations available for bulk download
- Reasonable cause for failure to file/pay does not include common financial challenges
This week we look at:
- Trust terms mean estate gets no deduction for marital or charitable contribution for specified payment value
- IRS provides for broad penalty relief for certain returns from 2019 to 2020
- National Taxpayer Advocate publishes blog post explaining IRS penalty relief
Copyright Kaplan, Inc.
This week we look at
- Inflation Reduction Act of 2022 signed into law on August 16, 2022
- Information on electric vehicle for 2022 released by Treasury, IRS and Department of Energy
- Outline electric vehicle credit for remainder of 2022 and 2023 changes
- IRS releases sample Written Information Security Plan (WISP) for tax professionals
The House and Senate pass the Inflation Adjustment Act of 2022 and we look at some key provisions:
- Increase in funding at the IRS
- Continuation of 2021-2022 Premium Tax Credit Rules
- Tax credits on clean energy vehicles
- Expansion & extension of residential energy credits
- Credit transfer provisions
Copyright, Kaplan, Inc.
This week we look at:
- IRA 2022 passes the Senate with revisions, House to take it up this week and may vote on Friday
- Inflation adjusted premium tax credit percentages released
- IRS revises questions on digital assets on Form 1040 for 2022
- $51 million payment was not deductible alimony
- IRS finalizes removal of signature requirement on §754 election
This week we look at:
- Proposed Inflation Reduction Act of 2022 - will it pass and what’s in it?
- Taxpayer told by court suit is being dismissed, must file 2020 income tax return to obtain economic impact payment not previously sent to taxpayer
- IRS Security Summit warns tax pros about significant security threats to taxpayer data in their systems
Copyright 2022, Kaplan, Inc.
This week we look at:
- IRS wants preparers to advise clients to opt-in to IP-PIN program.
- TAM holds that an activity that is treated as a material participation activity for five straight years under SPA test will be a material participation activity under the 5/10 test in year 6
- Breadwinner not granted innocent spouse relief when she failed to inquire about or review return prepared by accountant spouse
Copyright 2022, Kaplan, Inc.
This week we look at:
- Reconciliation bill talks stall in Congress
- Taxpayer loses on charitable contribution deduction due to failure to give entire interest and lacking proper acknowledgment for donation to donor advised fund
- Taxpayer not allowed to shorten statute for collections based on shortcomings in own OIC filings
- No reasonable cause for failure to report distribution when 1099-R sent to wrong address
Copyright 2022, Kaplan, Inc.
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
This week we look at: * AICPA letter on Section 174 guidance from the IRS - TCJA changes * Form 7203 - impact on tax season and dealing with lack of basis records
Copyright 2022, Kaplan, Inc.
This week we look at: * Taxpayer discovers her documentation for a charitable contributions did not meet the IRC requirements * IRS rules an enterprise involved in retail drug sales is a qualified trade or business under IRC §1202
Copyright 2022, Kaplan, Inc.
This week we look at:
- Physician’s payments are found not to be deductible alimony under pre-TCJA divorce agreement
- IRS announces option for employer leave-based donation programs related to aid for Ukraine
- IRS extends, likely for the final time. option to remotely sign certain plan documents
Copyright 2022, Kaplan, Inc.
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.
This week we look at: * Tax rules for no-additional cost services * SCOTUS refuses to hear challenge to SALT cap * IRS finally grants election/accounting method relief for retroactive 2019 changes * Rules for a real estate professional * IRS expands on Schedules K-2 and K-3 FAQs on April 11
Copyright 2022, Kaplan, Inc.
This week we look at: * IRS Suspends Mailing More Notices - This Time Related to Exempt Organizations * Tax Court Affirms IRS Denial of Interest Abatement * Securing a Strong Retirement Act Passes House Overwhelmingly * Above the Line Classroom Teacher’s Deductions Increases to $300 in 2022
Copyright Kaplan, Inc.
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
- IRS issues updated substantially equal payment guidance
- Final version of basis reporting form for S corporation shareholders issued by IRS
- IRS clarifies how to report expenses used to obtain PPP forgiveness on Schedule M-2
- IRS completes guidance on reporting options for timing of PPP loan forgiveness income recognition
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.