Current Federal Tax Developments for the week of October 21, 2019: The Details are in Forms (and Instructions)
Agents directed to grant relief in certain WOTC situationsForm 1120-S instructions disclose 3 new statements to be required on K-1s for 2019Social security inflation adjusted 2019 numbers officially releasedSecond draft of Form 1065 Schedule K-1 asks for additional information about disregarded entity partnersTAS’s request for a delay while taxpayers facing loss of passport seek...
Current Federal Tax Developments for the week of October 7, 2019: Virtual Currency and Taxes
IRS expands IP PIN program to 10 more states
Question on virtual currency transactions will be on Schedule 1, Form 1040 and 1040SR, along with release of more draft instructions
Hard forks of virtual currencies are taxable events per IRS and the rule appears to apply retroactively
Additional set of FAQs added for taxation of virtual currencies to IRS website
Copyright 2019 Kaplan, Inc.
Current Federal Tax Developments for the week of September 23, 2019: Zombie Power of Attorney
IRS releases final and new proposed regulations on §168(k) bonus depreciationSettlement offer to be sent to 200 taxpayers under exam for microcaptive structuresGovernment shutdown causes IRS to lose ability to extend statute taxpayer had already agreed to extendPower of attorney not used by son nevertheless left him authorized to act for father, barring claim for extended statuteCPA ordered to turn...
Current Federal Tax Developments for the week of September 3, 2019: No Horse, No Business
Tax Court finds that taxpayer did not have a trade or business of raising/showing horses since she didn’t have a horseTax Court rejects IRS’s “step in the shoes” theory for gifted partnership interest with interest from debt-financed distribution received by donorIRS accepts court’s revision of IRA beneficiary, surviving spouse allowed to treat IRA as her ownCoffeehouse was not a §501(c)(3) charitable...
Current Federal Tax Developments for the week of August 19, 2019: George M Would Be Proud...
Taxpayer “wins” on a Cohan style case, but things don’t really go well
Qualified plan distribution is part of taxable income for the taxpayer even if the taxpayer doesn’t cash the check
An estate cannot avail itself of the economic disability tolling of the statute of limitations (and it wouldn’t have mattered anyway).
IRS to send out estimated tax penalty refund checks to 400,000...
Current Federal Tax Developments for the week of July 29, 2019: 1982 Tax Form Nostalgia
IRS releases final regulations on §501(c)(4) noticeTaxpayers who paid certain French taxes may have refund opportunitiesSix new compliance initiatives announced by IRSMinor relief granted to file superseding returns to some CPAR covered partnershipsIRS releases a new draft version of Form 1099-NEC for the first time in 38 years Copyright 2019 Kaplan, Inc.
This week we look at:
Taxes-Security-Together Checklist for tax professionals issued by the IRS
Tax Court found that taxpayer was victim of a bookkeeping error and had sent IRA rollover contribution to custodian, late rollover allowed
IRS discovers 31 years after the fact that a typo fix never was picked up in the Code of Federal Regulations
Frequently asked questions page issued to explain TCJA change to §704(d) partner basis limits on charitable deductions and foreign taxes
Update for the week of July 8, 2019. This week we look at:
The Taxpayer First Act of 2019, signed into law on July 1, 2019
The Supreme Court decides one trust due process case is enough for a single term
IRS proposed a change in MEP to allow a solution to the one bad apple problem
IRS goes back to issuing guidance via website FAQs, this time for QOFs
Employers will be able to truncate SSNs on W-2s given to employees--but not right away
IRS finalizes regulations barring partnerships...
Current Federal Tax Developments for the week of June 24, 2019: SCOTUS Just Says No
Proposed regulations issued on qualified agricultural cooperatives
US Supreme Court rules mere residence of beneficiary not enough to all state to tax entire income of trust
Taxpayer had a proper claim of right situation when she paid ½ of wages paid back by ex-spouse
IRS finalizes non-resident alien ESBT regulations
Copyright 2019, Kaplan, Inc.
This week we look at:
IRS to stop faxing transcripts, only mail them to taxpayer’s address of record
Final regulations issued for state tax credit donations and new way to report credit as tax paid
IRS finalizes regulations creating two new HRAs
Copyright 2019, Kaplan, Inc.
This week we look at
S corporation status lost when SMLLC shareholder adds a new interest holder
Tax Court does not accept author’s attempt to treat a portion of her income as not self-employment income
IRS releases employer tables and worksheets for TCJA-aware draft Form W-4
TIGTA finds that LB&I imposes accuracy-related penalties at lower rate than does SE/SE
Envelope used to file Tax Court petition lacked postmark, taxpayer could not explain delivery much later than would be expected...