2019-04-08 SALT and the Home Office

Current Federal Tax Developments for the week of April 8, 2019: SALT and the Home Office

• IRS sends proposed regulations on §199A for cooperatives to OIRA for review

• PMTA outlines intereaction of home office and SALT cap

• Trade or business definition for instructions in Form 461 issue identified by IRS

• Second Circuit reverses Tax Court decision that found a tax “black hole”

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2019-04-08 Current Federal Tax Devleopments

2019-04-01 Tax Benefit Rules and Refunds

Current Federal Tax Developments for the week of April 1, 2019: Tax Benefit Rules and Refunds

• Electric vehicle credits for GM vehicles to begin one year phase out

• IRS gives formal guidance on treatment of state income tax refunds following the TCJA $10,000 cap

• SALT workaround regulations and related notice sent to OIRA

• IRS changes requirements to obtain EIN, requires responsible person to have SSN or ITIN

• Final regulations published on reportable transaction law modifications from 2010

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2019-04-01 Current Federal Tax Developments

2019-03-25 More Underpayment Relief

Current Federal Tax Developments for the week of March 25, 2019: More Underpayment Relief Issues with

• QBI and disallowed passive losses

• Minister’s housing allowance ruled to be acceptable under the U.S. Constitution

• Pilot had no profit motive for business related to vintage World War II aircraft

• IRS suspends two Revenue Rulings related to active trade or business issues under §355

• Relief from underpayment of estimated tax penalty expanded by IRS

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2019-03-25 Current Federal Tax Developments

2019-03-18 Technicalities and Glitches

Current Federal Tax Developments for the week of March 18, 2019: Technicalities and Glitches

• Software glitches in the first years under TCJA

• Lump sum social security benefits are part of MAGI for the premium tax credit

• Safe harbor statements have to be signed and then attached to electronically filed returns as a PDF

• Taxpayer’s mistake in listing old address on tax return proves costly

• Tax Court rejects no harm, no foul view with regard to penalties for filing an S corporation return late

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2019-03-18 Current Federal Tax Developments

2019-03-11 §199A Return Issues

This week we talk about the following:

• Look at some items causing confusion over §199A on discussion forums as returns are prepared

• Treasury announces changes in temporary regulations and subregulatory guidance

• Recipients of sexual harassment and sexual abuse settlements with confidentiality clause allowed to deduct legal fees

• Gambling loss triggered by impulse control problem side effect of prescribed drug not a casualty loss

• Proposed regulations issued for FDII and GILTI

• IRS no longer plans to issue regulations to bar post-retirement lump-sum distributions from defined benefit plans

• Partnerships required to add tax basis disclosures given until March 15, 2020 to provide information to IRS

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2019-03-11 Current Federal Tax Developments

2019-03-04 Tax Refunds and the 2019 Tax Returns

Current Federal Tax Developments for the week of March 4, 2019: Tax Refunds and the 2019 Tax Returns

• A look at the special rules under §111 for tax benefit and how it impacts state tax refunds from 2018 returns

• No Fifth Amendment defense against assertion that taxpayer is trafficking under §280E

• IRS grants extension of time to file returns for farmers and fishermen

• IRS has the authority to impose PTIN fees

• Tax Court looks at the application of the penalty review process to automated exams

• IRS gave insufficient notice that a third party would be contacted for information

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2019-03-02 Current Federal Tax Developments

2019-02-25 Co-op Real Estate Tax Issue

Current Federal Tax Developments for the week of February 25, 2019, Co-op Real Estate Tax Issue

• State found to illegally discriminate against federal law enforcement retirees due to tax break for state law enforcement retirees

• IRS decides expanded availability of meal delivery means fewer meals are truly for the convenience of the employer

• IRS acquiesces in case regarding meals for hockey teams

• Politico points out loophole that may exist for owners of co-op shares with regard to $10,000 tax limitations

• Looking at options beyond the safe harbor for rentals under §199A

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2019-02-25 Current Federal Tax Developments

2019-02-18 Forms and Instructions Week

Current Federal Tax Developments for the week of February 18, 2019: Forms and Instructions Week

• Fix for auto depreciation quirk added by TCJA released by IRS

• A subtrust qualified as a conduit trust for IRA distribution purposes

• AICPA asks for relief from potential impact of syndicate rules on small business tax relief

• Form 1065 instructions add a requirement for certain partnerships to disclose negative tax basis

• Checkbox added for when basis calculation required with Form 1040 and situations where it is required expanded by IRS

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2019-02-18 Current Federal Tax Developments

2019-02-11 Tax Records and Luggage

This week we look at:

• Situations where an employer can recover HSA funds from employee accounts

• IRS decides taxpayers can use Rev. Proc. 2018-60 even if currently using an impermissible method of accounting

• Taxpayer reasonably relied on CPA's advice and escapes penalties

• Airline passenger discovers he can't sue the TSA for his lost tax paperwork

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2019-02-11 Current Federal Tax Developments

2019-02-04 What is in a Word?

This week we look at:

• IRS delays end of faxing transcripts after Chair and ranking minority member of Senate Finance Committee send a joint letter requesting a delay

• Taxpayers could not avoid NOL carryforward election they claimed they were unaware of

• IRS publishes corrected version of §199A regulations, changes one word some see as potentially important

• Article discusses risks to marijuana businesses from electing small business inventory relief added by TCJA

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2018-02-04 What is in a Word?

2019-01-28 IRS Funding Restored (At Least for Now)

This week we look at:

• Reported IRS backlog of unanswered letters that arrived during the shutdown

• IRS publishes information on impact of shutdown on matters before the Tax Court

• W-2 wages Revenue Procedure made final at same time §199A final regulations come out

• More thoughts on the §199A final regulations\

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2019-01-28 Current Federal Tax Developments

2019-01-21 199A Final Regulations and Rental Safe Harbor

This week we look at:

• New York State Publishes Its Wayfair Guidance, Demanding Immediate Compliance

• Trust Case Going to US Supreme Court

• Sequestration Does Not Apply to Minimum Tax Credit

• Proposed Safe Harbor for Rental as a Trade or Business Under §199A

• Final Regulations Are Out - §965 and, the Big One, §199A

• IRS Grants Limited Waiver of Underpayment Penalties

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2019-01-21 Current Federal Tax Developments

2019-01-14 Syndicate Danger

Current Federal Tax Developments for the week of January 14, 2019: Syndicate Danger

• IRS reopens IVES and user-fees based programs

• Advisers need to be sure to check syndicate rules to assure entity not subject to §163(j) rules

• Treat of realtors revised in second draft version of portion of Publication 535

• Filing season to start January 28, refunds are going to be issued

• Address to file gift tax returns has changed, estate tax return address to change in July

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2019-01-14 Current Federal Tax Developments

2019-01-07 All Quiet on the Tax Front

Current Federal Tax Developments for the week of January 7, 2019: All Quiet on the Tax Front

• IRS Notice gives guidance to tax-exempt organizations on excess compensation tax

• Outgoing W&M Chairman publishes discussion paper on TCJA technical corrections

• §199A final regulations still sitting at OIRA

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2019-01-07 Current Federal Tax Developments

2018-12-31 Lump of Coal for Real Estate Agents?

This week we look at:

• Loan Adviser Found Not Liable to Repay in FINRA Treated as Ordinary Income from Debt Forgiveness

• IRS Raises Values Dramatically on Vehicles Eligible for Cents-Per-Mile and Fleet-Average Valuation Rules

• Safe Harbor Issued on Charitable Contribution Credits Related to a Trade or Business

• Revenue Procedure Issued to Deal with ADS Issues for Electing Farm and Real Property Businesses

• IRS Publication Indicates Real Estate Agents/Brokers and Insurance Agents/Brokers are in a Specified Service Trade or Business

• Proposed Regulations on Treating Sale of Partnership Interest as Effectively Connected to US Trade or Business

• IRS Announces Plan to Issue Regulations on Two Special Enforcement Matters Under CPAR, as Well as CPAR Final Regulations

• Annual Disclosure Revenue Procedure Updated by IRS

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2018-12-31 Current Federal Tax Developments

2018-12-24 Feeling Blue (Book) Over the Holidays

Current Federal Tax Developments for the week of December 24, 2018: Feeling Blue (Book) Over the Holidays

This week we look at:

• Just prior to the one year anniversary of TCJA, we finally get a Joint Committee staff Blue Book.on the law

• Tax credits for purchases of Teslas are being phased-out during 2019

• MFP payments found in IRS memorandum to be taxable income and part of self-employment income

• Auto mileage rates for 2019 issued by the IRS

• A management company that managed a marijuana dispensary was subject to the deduction disallowance rules of §280E

• A limited amount of additional information released by the IRS on excess loss and NOL rules under TCJA

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2018-12-24 Current Federal Tax Developments

2018-12-17 All We Want for Christmas Are Our 199A Final Regulations

This week we look at:

• IRS releases more proposed regulations

• Lack of documentation dooms deduction for taxpayers

• §199A final regulations sent to OIRA for review

• Guidance issued on valuing employer provided parking for parking lot tax

• Relief given for some tax-exempt organizations first filing Form 990-T to pay parking lot tax

• Taxpayers who were out of the country for much of the period of nonpayment still found to be responsible persons

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2018-12-17 Current Federal Tax Developments

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

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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

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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

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