2019-10-21 It's All in the Forms (and Instructions)

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 situations

• Form 1120-S instructions disclose 3 new statements to be required on K-1s for 2019

• Social security inflation adjusted 2019 numbers officially released

• Second draft of Form 1065 Schedule K-1 asks for additional information about disregarded entity partners

• TAS’s request for a delay while taxpayers facing loss of passport seek assistance denied by IRS

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

The articles for this week’s updates can be downloaded below:

2019-10-21 Current Federal Tax Developments

2019-10-14 Virtual Currency and Taxes

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

Articles on this week’s update are available in the following PDF.

2019-10-14 Current Federal Tax Developments

2019-10-07 Get Ready for the 2019 Passthrough Forms

Current Federal Tax Developments for the week of October 7, 2019

• Pennsylvania cites Wayfair in providing for sales only based income tax nexus

• Taxes on investment real estate under IRC §164 - no $10,000 limit?

• Drafts of 2019 Forms 1065, 1120-S and related K-1s released by IRS

• Proposed regulations for ALEs using individual coverage HRAs released

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

A PDF containing articles on this week’s update can be downloaded below:

2019-10-07 Current Federal Tax Developments

2019-09-30 Rentals and the Safe Harbor

Current Federal Tax Developments for the week of September 30, 2019:

• Rentals and the Safe Harbor IRS releases final version of §199A rental safe harbor

• Special per diem rates that take effect on October 1, 2019 released

• Tax Court does not accept imprisonment and lack of access to what might be deductible expense documentation as reasonable cause for late filing.

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

Article for this week’s update can be downloaded below.

2019-09-30 Current Federal Tax Developments

2019-09-23 Zombie Power of Attorney

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 depreciation

• Settlement offer to be sent to 200 taxpayers under exam for microcaptive structures

• Government shutdown causes IRS to lose ability to extend statute taxpayer had already agreed to extend

• Power of attorney not used by son nevertheless left him authorized to act for father, barring claim for extended statute

• CPA ordered to turn over tax returns of client based on two factor test

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

The articles for this week’s updates can be downloaded below:

2019-09-23 Current Federal Tax Developments

Section 451 Week

Current Federal Tax Developments for the week of September 16, 2019:

• §451 Week Students learns real life lesson on taxation of prizes, and we get a tax history lesson

• Proposed regulations issued for advance payments under TCJA §451(c)

• Proposed regulations issued for §451(b) revenue conformity added by TCJA

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

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

2019-09-16 Current Federal Tax Developments

2019-09-09 But I Promise, Really!

Current Federal Tax Developments for the week of September 9, 2019: But I Promise, Really!

• IRS release instructions to 2019 §199A simple deduction form with additional informal guidance

• Memorandum discusses what does and does not qualify as having made a payment to a retirement plan

• Relief granted to file the second copy of the Form 3115 late for an automatic method change, but at a cost

• Activities failed to count as rentals, could not be combined into rental activity by real estate professional

• A flawed S election uncovered during due diligence for sale of the corporation

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

Articles on this week’s developments can be downloaded here:

2019-09-09 Current Federal Tax Developments

2019-09-03 No Horse, No Business

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 horse

• Tax Court rejects IRS’s “step in the shoes” theory for gifted partnership interest with interest from debt-financed distribution received by donor

• IRS accepts court’s revision of IRA beneficiary, surviving spouse allowed to treat IRA as her own

• Coffeehouse was not a §501(c)(3) charitable organization

• Notice of deficiency sent to addresses used on returns found to be sent to last known address

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

Articles on this week’s developments can be downloaded below.

2019-09-03 Current Federal Tax Developments

2019-08-24 Watching Paint Dry Doesn't Count

Current Federal Tax Developments for the week of August 26, 2019: Watching Paint Dry Doesn’t Count

• Taxpayer found both to have chosen the accrual method and to be required to use it as well

• §451 proposed regulations exit OIRA review

• Taxpayers records found to overstate hours by 150 hours, not qualified as a real estate professional

• IRS issues formal memo changing position on ability to claim foreign tax credit on certain French taxes

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

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

2019-08-26 Current Federal Tax Developments

2019-08-19 George M Would Be Proud

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 taxpayers

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

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

2019-08-19 Current Federal Tax Developments

2019-08-12 Toto Needs Sales Tax Money

Current Federal Tax Developments for the week of August 12, 2019: Dorothy and Toto Need Money

• Kansas releases out of state seller rules that have no de minimis levels

• Memorandum holds that partial denial of earned income tax credit can lead to loss of all credit for following two years

• Tennessee court finds that Boyle rule still applies, taxpayer cannot rely on preparer to efile extension

• New online tax withholding estimator released by IRS, second revised Form W-4 follows shortly after

• Revised third-party contact rules released prior to Taxpayer First Rule change that takes effect August 15, 2019

An audio only version of this week’s update can be streamed or downloaded at:

The articles for this week’s updates can be downloaded below:

2019-08-12 Current Federal Tax Developments

2019-08-05 About That Bitcoin

Current Federal Tax Developments for the week of August 5, 2019: About that Bitcoin...

• IRS sends out 10,000 letters on cryptocurrency, including some demanding a response

• Relief granted on three bonus depreciation elections for year that includes September 28, 2017

• Draft Schedule K-1 for Form 1120S revised to change §199A information reporting

• Letter ruling holds a partial deduction allowed for DNA tests requested by an individual

• Organization not operated exclusively for charitable purpose, §501(c)(3) status revoked retroactively

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

The articles for this week’s updates can be downloaded from the link below:

2019-08-05 Current Federal Tax Developments

2019-07-29 1982 Tax Form Nostalgia Week

Current Federal Tax Developments for the week of July 29, 2019: 1982 Tax Form Nostalgia

• IRS releases final regulations on §501(c)(4) notice

• Taxpayers who paid certain French taxes may have refund opportunities

• Six new compliance initiatives announced by IRS

• Minor relief granted to file superseding returns to some CPAR covered partnerships

• IRS releases a new draft version of Form 1099-NEC for the first time in 38 years

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

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

2019-07-29 Current Federal Tax Developments

2019-07-22 The Short Lived 1040 Postcard

Current Federal Tax Developments for the week of July 22, 2019: The Short-Lived 1040 Postcard

• Taxpayer who failed to file a signed Form 8332 with his return was denied the dependency exemption even though he eventually got a signed form

• IRS updates list of allowed preventive care for high deductible health plans

• IRS debuts new Form 1040-SR and revises Form 1040 to get rid of the postcard on draft 2019 forms the agency released

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

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

2019-07-22 Current Federal Tax Developments

2019-07-15 Fixing Typos Proves to Be Hard

Current Federal Tax Developments for the week of July 15, 2019: Typos are Hard to Catch

• 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

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

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

2019-07-15 Current Federal Tax Developments

2019-07-08 Congress Enacts the Taxpayer First Act

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 from using disregarded entities to put partners on the payroll

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

Materials related to this week’s broadcast can be downloaded below.

• 2019-07-08 Current Federal Tax Developments

• Taxpayer First Act of 2019 Highlights

2019-07-01 About that Drive from Florida to South Africa

Current Federal Tax Developments for the week of July 1, 2019:

• IRS issues notice to advisers regarding what to do in the event of a data breach

• IRS official confirms a §199A trade or business can include both commercial and residential rental

• Taxpayer found Tax Court didn't believe his vehicle logs

• Transaction found to be substantially similar to a listed transaction

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

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

2019-07-01 Current Federal Tax Developments

2019-06-24 Supreme Court Just Says No

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

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

Articles on this week’s developments can be found in the PDF below:

2019-06-24 Current Federal Tax Developments

2019-06-17 Bring on the New HRAs

Current Federal Tax Developments for the week of June 17, 2019: Bring on the New HRAs

• 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

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

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

2019-06-17 Current Federal Tax Developments

2019-06-10 Being Yourself as a Business

Current Federal Tax Developments for the week of June 10, 2019: Being Yourself as a Business

• 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 for timely mailed document

The audio only broadcast can be downloaded below:

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

2019-06-10 Current Federal Tax Developments