2018-12-10 SALT Workaround, Wisconsin Style

This week we look at the following items:

• Wisconsin passes its version of an optional passthrough tax to get around SALT limits, but with a twist

• Guidance released on Section 81(i) stock elections

• Taxpayer finds you still need some documentation to claim cellular phone expenses

• IRS fails to persuade Court that a taxpayer had changed its accounting method

• A brief revisit to the Section 451(b) automatic change revenue procedure

• Taxpayer warned about filing Tax Court petition primarily to delay collection

An audio version of this week’s broadcast can be downloaded or streamed below:

Articles for this week’s developments can be downloaded below:

2018-12-10 Current Federal Tax Developments

2018-12-03 Interest Regulations Are Out

Current Federal Tax Developments for the week of December 3, 2018: Interest Regulations are Out

This week we look at the following items:

• IRS releases the 163(j) interest deduction limitation proposed regulations

• Special real property election for infrastructure maintenance company Revenue Procedure released

• IRS memorandum describes what the IRS can question when an employer excludes meals from employee’s wages under §119

• Foreign tax credit proposed regulations issued

• Automatic accounting method change procedures issued for §451(b) revenue conformity

An audio only broadcast can be downloaded or streamed below:;

2018-11-26 Slow March of the 163(j) Proposed Regulations

Current Federal Tax Developments for the week of November 26, 2018: Slow March of the 163(j) Proposed Regulations

• This week we look at the following items:

• Proposed anti-clawback regulations issued

• Final §263A negative amount regulations issued

• §163(j) proposed regulations leave OIRA (finally), last step before publication

An audio only version of this week’s broadcast can be streamed or downloaded below:

2018-11-19 Chained CPI Makes Its Full Debut

This week we look at the following items:

• IRS publishes 2019 inflation adjusted figures

• IRS notes increase in breaches of systems of tax return preparers in 2018

• Filing and deposit date relief announced for victims of California wildfires

• IRS email discusses application of due diligence preparer penalties

An audio version of the broadcast can be streamed or downloaded below:

2018-11-12 Due Diligence

This week we look at the following items:

• §163(j) proposed regulations due this week

• IRS releases final TCJA due diligence regulations

• Country singer found not to operate night club for a profit

• Foreign earned income denied when taxpayer did not show his abode was outside the United States

An audio only version of this week’s broadcast can be downloaded and streamed below.

2018-11-05 Parking Lot Tax

Current Federal Tax Developments for the week of November 5, 2018: Parking Lot Tax

This week we look at the following items:

• Inflation-adjusted retirement plan numbers for 2019 released

• IRS publishes draft Form 990-T and instructions with details on the parking lot tax

• Students lose at DC Circuit in attempt to claim travel deductions

• A Blue Book on TCJA may be coming soon

• A taxpayer is denied relief from liability for tax due on a joint return the court finds she didn’t file

An audio only version of this week’s broadcast can be downloaded or streamed below.

2018-10-29 More Guidance to Come

This week we look at the following items:

• Court finds IRA and plan balance received in divorce not protected in bankruptcy

• Interest limitation proposed regulations (except for passthroughs) heads to OMB

• Connecticut crumbling foundation relief clarified to also create NOLs that can be carried back in 2018

• PTIN renewal opened up by the IRS

• OMB announces plans for guidance on TCJA loss limitation rules--but not planned to be out until June 2019

• Taxpayer denied innocent spouse relief.

An audio only version of the broadcast can be streamed or downloaded below:

2018-10-22 Seizing the Opportunity

Current Federal Tax Developments for the week of October 22, 2018: Seizing the Opportunity

This week we look at the following items:

• A pastor had taxable income from pastoral donations

• IRS grants filing and payment relief related to Hurricane Michael

• A taxpayer could not apply payment where the IRS had levied the account

• Initial Qualified Opportunity Zone proposed regulations issued

Citations for this week’s topics and a copy of the proposed regulations can be downloaded below:

2018-10-22 Current Federal Tax Developments

2018-10-08 Business Meals Deduction is Alive and Well

This week we look at the following items:

• IRS issues SIFL rates for second half of 2018

• Information letter discusses more issues with the SALT workaround regulations

• Business meals will remain 50% deductible despite TCJA law changes

• ECPRS program updated by the IRS Market discount not subject to TCJA revenue conformity rule

• §457 plan not required to offer hurricane relief distributions

An audio version of this week’s broadcast can be streamed/downloaded below:

A PDF with the articles on this week’s updates can be downloaded below:

2018-10-08 Current Federal Tax Developments

2018-10-01 Employee Benefits Week

Current Federal Tax Developments for the week of October 1, 2018: Employee Benefits Week

This week we look at the following items:

• Wall Street Journal reports IRS will issue guidance allowing 50% deduction for business meals

• IRS issues guidance on credit for paying employees on FMLA leave

• Moving expenses incurred in 2017 but reimbursed in 2018 ruled to be excludable from the employee’s income

• Special per diem rules, including high/low amounts, updated by the IRS

• IRS agent found to qualify as an innocent spouse when given what turned out to be a misleading response by soon to be ex-spouse

An audio only version of this broadcast can be streamed or downloaded below:

The articles for this week’s developments can be downloaded via the link below:

2018-10-01 Current Federal Tax Developments

2018-09-24 Is This Reasonable?

This week we look at the following items:

• Tax Court allows taxpayer to try and prove reasonable reliance on indirect legal advice

• Updated safe harbor explanations for plan distributions issued by IRS

• IRS delays major revision to Form W-4 to 2020

• Relief announced for victims of Hurricane Florence

An audio only version of this week’s broadcast can be streamed or downloaded below:

A PDF with the articles for this week’s articles can be downloaded below:

2018-09-24 Current Federal Tax Developments

2018-09-17 Are 349 Filings Unconstitutional?

Current Federal Tax Developments for the week of September 17, 2018: Are 349 Filings Unconstitutional?

This week we look at the following items:

• South Dakota enacts remote seller law to implement Wayfair decision beginning November 30

• Colorado tests the limits of Justice Kennedy’s holdings in Wayfair

• Even though records were imperfect, Tax Court finds taxpayer was a real estate professional

• Opportunity Zone regulations at OMB, expected out around end of the month

• IRS rules math error procedures can be used even after refunds are issued

An audio only version of this broadcast can be streamed or downloaded below:

The articles for this week’s update can be downloaded in the PDF below:

2018-09-17 Current Federal Tax Developments

2018-09-10 SALT Clarification - Well, Not Really

Current Federal Tax Developments for the week of September 10, 2018: SALT Clarification - Well, Not Really

This week we look at the following items:

• South Dakota to hold a special session so the state can begin to take advantage of their victory in the Wayfair case
• Taxpayer who withdrew IRA funds based on a notice of intent to levy cannot escape 10% additional tax
• IRS clarifies the application of the proposed SALT regulations leading to a bevy of questions
• IRS memorandum concludes seismic fees for offshore drilling must be amortized and cannot be treated as intangible drilling costs
• President issues an Executive Order for DOL and Treasury to consider certain changes to retirement plans
• Tax Court disagrees with the IRS’s view on how §1291(c) gains interact with six year statute

An audio only version of this week's broadcast can be streamed or downloaded below:

A PDF with the articles from this week's broadcast can be downloaded below.

2018-09-10 Current Federal Tax Developments

2018-09-04 Do You Comply with the Safeguards Rule

Current Federal Tax Developments for the week of September 4, 2018: Do You Comply with the Safeguards Rule?

This week we look at the following items:

• IRS warns tax professionals about FTC’s Safeguards Rule for confidential data
• Clarification of how change in exemption amounts will apply to items tied to exemption amounts
• Lessee is not able to claim conservation deduction for facade easement
• Letter ruling approves program where employer makes plan contribution for employees who pay on their student loans
• Taxpayer allowed extra time for late rollover where she had relied on spouse for tax and financial matters when couple separated while rollover was pending

An audio only version of the broadcast can be streamed or downloaded below:

A PDF of this week's articles can be downloaded below:

2018-09-04 Current Federal Tax Developments

2018-08-27 State Tax Credits Take a Hit

Current Federal Tax Developments for the week of August 20, 2018: State Tax Credit Structures Take a Hit

This week we look at the following items:

• Taxpayers creating multiple entities to try and avoid double taxation of C corporation income find their plan fails
• IRS issues SALT workaround regulations and affect both new and pre-existing state tax credit programs
• Modifications made to automatic accounting method revenue procedure to deal with S corporation revocations under special TCJA rule
• Guidance provided on applying the rules to compute UBTI separately for each trade or business

The audio only version of this week's broadcast can be streamed or downloaded below:

The articles for this week's update can be downloaded as a PDF below:

2018-08-27 Current Federal Tax Developments

2018-08-20 IRS Stays Quiet, States Keep Going

Current Federal Tax Developments for the week of August 20, 2018:  IRS Stays Quiet, States Keep Going

This week we look at the following items:

• Oregon Supreme Court rules no physical presence required to be subject to corporate income tax
• Idaho sends out notices to retailers that it’s moving forward with affiliate rule for collecting sales tax
• IRS prevails over AICPA on question of issuing credential for unenrolled tax preparers
• AICPA sends comments to the IRS and Treasury on S corporation and Section 461(l) issues following TCJA

The audio version of this week's broadcast can be downloaded or streamed below.

This week's article are the contained in the following PDF:

2018-08-20 Current Federal Tax Developments

2018-08-13 199A Regulations Some Answers, Some Questions

Current Federal Tax Developments for the week of August 13, 2018:  199A Regulations Some Answers, Some Questions

This week we look at the following items:

• North Carolina announces out of state sellers required to begin collection of sales tax on November 1, 2018
• Legal fees were not from a trade or business and were not expenses of the S corporation
• IRS releases much anticipated proposed regulations on the 199A deductiton including guidance on
  • Aggregation into a single trade or business
  • Definitions of specified service activities
  • Various anti-abuse rules

An audio only version of the broadcast can be streamed or downloaded below:

A PDF with articles for this week (including a long analysis of the proposed regulations) can be downloaded via the link before.

2018-08-13 Current Federal Tax Developments

2018-08-06 TCJA Guidance Appears

Current Federal Tax Developments for the week of August 6, 2018:  TCJA Guidance Appears

This week we look at the following items:

• Proposed regulations for 965 are issued, others on state and local tax workarounds submitted to OMB
• Majority of states that impose a sales tax now have published post-Wayfair remote seller collection requirements and start dates
• Proposed regulations on which taxpayers may rely issued on bonus depreciation
• Automatic accounting method change guidance issued for TCJA small business accounting methods
• 529 plan revised guidance to deal with TCJA and other recent changes
• Guidance issued on additional contributions allowed to ABLE accounts by TCJA changes

An audio version of this week's broadcast can be streamed or downloaded below.

Articles on this week's developments can be downloaded as a PDF below.

2018-08-06 Current Federal Tax Developments

2018-07-30 A 199A Glimmer of Hope

Current Federal Tax Developments for the week of July 30, 2018: A 199A Glimmer of Hope.

This week we look at the following items:

• First 199A regulations are sent to OMB for review
• Minnesota tests whether lower limits than South Dakota will work under Wayfair
• Utah enacts South Dakota limits for remote sellers
• Another US District Court agrees that the IRS’s own regulations limit the FBAR willfulness penalty amount
• Taxpayer stuck with transferee liability after entering into transaction to sell corporation

An audio only version of this week's broadcast can be streamed or downloaded below.

A PDF with articles on this week's developments can be downloaded below:

2018-07-30 Current Federal Tax Developments

2018-07-23 Taxing Trusts Roadblocks

Current Federal Tax Developments for the week of July 23, 2018: Taxing Trust Roadblocks.

This week we look at the following items:

• Two state supreme courts restrict their states’ ability to tax trusts
• IRS issued PMTA on willfulness for FBAR penalty
• Forfeitures now can be used to fund QMACs and QNECs
• IRS discusses the impact on taxable wages of a payroll tax examination
• Many exempt organizations will no longer have to file Schedule B with Form 990
• Proposed regulations issued on due diligence expansion to head of household status added by TCJA

An audio only version of this broadcast can be streamed or downloaded below:

Articles on the developments discussed this week can be found in the PDF available for download below:

2018-07-23 Current Federal Tax Developments