2020-03-02 Late Filing Week

Current Federal Tax Developments for the week of March 2, 2020: Late Filing

• Taxpayer who voluntarily exited OVDI program ended up with very poor result.

• Illnesses of corporate officers not found to give reasonable cause for late filing of S corporation returns.

• Supreme Court refuses to review Ninth Circuit ruling upholding IRS regulation that only items listed in §7502 can be used to prove timely filing.

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2020-03-02 Current Federal Tax Developments

2020-02-24 Meals and Entertainment Guidance;

Current Federal Tax Developments for the week of February 24, 2020: Meals and Entertainment After TCJA

• Proposed regulations can be relied upon in the interim, as well as continued reliance on Notice 2018-76
  Separate invoicing rule for food/beverage first released in Notice 2018-76 is also in the proposed regulations

• Definition of entertainment stays similar to older definition, but does not include business meals

• Adopts Notice 2018-76 rules for business meals

• Detailed guidance on meals related exceptions to 50% disallowance found at §274(e)

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2020-02-24 Current Federal Tax Developments

2020-02-17 The Week of Fortnite and Schedule 1

Current Federal Tax Developments for the week of February 17, 2020: The Week of Fortnite and Schedule 1

• IRS urges tax professionals to make use of mutli-factor authentication

• V-bucks and Roblox removed from list of convertible virtual currencies on FAQ

• Challenge to validity of regulations on disclosing basis in appraisal found wanting by the Tax Court

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2020-02-17 Current Federal Tax Developments

2020-02-10 Waiting for the §163(j) Regulations

This week we look at:

• Regulations implementing changes to FAVR and cents-per-mile methods finalized by IRS

• OIRA finishes review of final §163(j) regulations, starts review of additional proposed regulations

• Tax Court finds that language in deed fails to comply with regulations for qualified conservation easements

• Form 1023 now goes fully online--but only after 90 days when applicants can still use paper

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2020-02-10 Current Federal Tax Developments

2020-02-03 Western Wisconsin Week

This week we look at:

• Special agent in charge of Los Angeles CID talks about their potential use of the virtual currency question on Schedule 1, Form 1040.

• Taxpayer wins on claim LLC was not a sham, but finds the result is actually worse when court rules amounts paid to law firm were start-up expenses under §195 TAM rules that taxpayer did not have an intangible related to synergistic benefits that could be written off.

• Taxpayer could not use claim of right provision under §1341(a) to claim a deduction related to gain recognized in prior year when trustee of grantor sold stock that trustee was barred from selling by the trust agreement.

• IRS and taxpayer agree that a regulation on the books since 2001 mandates a result different from what the court had arrived at when agreeing with IRS position on §7502(a) and late filed returns asserted originally in the case.

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2020-02-03 Current Federal Tax Developments

Using RIA's Citator 2d

A quick video going over how to use the RIA Citator 2d to check on the status of various authorities uncovered in tax research.

2020-01-27 Real Soon Now

This week we look at:

• IRS can use sample of transactions to carry burden for §165(c) kickbacks/bribery issues per CCA

• IRS gives IRA custodians relief on RMD notices for 2020--but it means IRA owners may get bad advice about required distributions

• Treasury indicates that guidance on excess distributions on termination deduction is “just around the corner.”

• Microsoft denied assertion of privilege for most documents prepared by outside accounting firm in transfer pricing case

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2020-01-27 Current Federal Tax Developments

2020-01-20 Relief Week

Current Federal Tax Developments for the week of January 20, 2020: Relief Week

• IRS expands rules excluding from income discharge of certain student loan debt

• Did the IRS just endorse a SALT workaround? Or maybe not…

• Small partnership late filing relief revenue procedure still in effect despite repeal of TEFRA provision

• Tax Court found taxpayer’s petition was more likely than not filed timely.

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2020-01-20 Current Federal Tax Developments

2020-01-13 When Bad Things Happen Penalties and Disqualification

This week we look at:

• A look at the interaction of qualified plans and post-70 ½ deductible IRA contributions under the SECURE Act.

• A date change in the final version of the SECURE Act related to the kiddie tax.

• An ESOP is found to be disqualified from inception due to both issues in its plan document and in operation of the plan.

• IRS announces e-file start dates, with business returns now being accepted.

• Two cases look at the timing of the required IRS supervisor review of proposed penalties in an exam.

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2020-01-13 Current Federal Tax Developments

2020-01-06 Beginning a New Decade

This week we look at:

• Case from the Archive: Taxpayer Shows How to Win When the IRS Claims Your Business is a Hobby

• Taxpayers who have SFR prepared won’t see a §199A deduction in the SFR 2020

• Auto mileage rates issued at the last minute

• Charitable contributions of virtual currency guidance issued by IRS in FAQ

• Taxpayers can’t raise substance over form argument since the taxpayer picked the form

• Final Qualified Opportunity Fund regulations issued by the IRS

• IRS issues updated guidance on withholding on pensions

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2020-01-06 Current Federal Tax Developments

2019-12-30 The Year's Big Tax Developments

This week we look at the big developments in taxes for 2019 as we come to the end of the year:

• §199A final regulations – a pre-tax season package that had to be quickly understood

• 2019’s year end tax bills – comes in three parts, along with a good portion of the government’s full appropriations package

• The IRS’s fascination with tax basis capital, and the profession’s reaction to the same

• §199A FAQ – so we’ll have fewer sub-regulatory guidance items, but that doesn’t mean it all gets reviewed like regulations. Or, perhaps, be careful what you wish for…

• States looking to extend their tax reach, but in a case with limited application SCOTUS did find there are some limits

• Additional items beyond the top five…

2019-12-23 A Tax Bill for the Holidays

Current Federal Tax Developments for the week of December 23, 2019: A Tax Bill for the Holidays

• Further Consolidated Appropriations Act, 2020 signed into law on December 20, 2019

  • SECURE Act

    • The good: Delay in required beginning date for plan distributions, later plan adoption date, etc.

    • The bad: Death of the stretch IRA

  • Extenders apply retroactively - so there are some amended returns that will be needed

  • Tax-exempt version of the parking lot tax is gone, but the for profit version is still around

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This week’s update covers the SECURE Act - see the article at:

SECURE Act, Extenders and Repeal of Certain ACA Taxes Enacted as Part of Year End Appropriations Act

2019-12-16 The Sound of Silence

Current Federal Tax Developments for the week of December 16, 2019: The Sound of Silence

• IRS does not have the discretion to waive repayment of advance premium credit

• Employer who reimburses employee when transit card fails to function has to include amount in wages per CCA

• IRS issues more proposed regulations on state tax issues and charitable contributions, but remains silent on passthrough tax issues

• IRS grants relief from use of tax basis capital account on partnership K-1s for one year

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2019-12-16 Current Federal Tax Developments

2019-12-09 Bring in the Forms

Current Federal Tax Developments for the week of December 9, 2019: Bring in the Forms

• Final version of 2020 Form W-4 released

• Final versions of 2019 Forms 1040, 1040-SR, Schedules 2 and 3 released

• Shortly thereafter, final version of Schedule 1 released still containing question about virtual currency

• Relief for provision of Forms 1095-B and C

• Detailed guidance issued for IRS agents on BBA audit procedures

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2019-12-09 Current Federal Tax Developments

2019-12-02 Horses and Hobbies

Current Federal Tax Developments for the week of December 2, 2019: Horses and Hobbies

• Commissioner rules that insurance payments for pyrrohite damage does not require Forms 1099

• Horse business found not to be a hobby, losses allowed

• IRS updates per diem rules for TCJA, following similar update for auto mileage rules

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2019-12-02 Current Federal Tax Developments

2019-11-25 Back to the FAQ

Current Federal Tax Developments for the week of November 25, 2019: Back to the FAQ

• IRS discusses information security responsibilities and risks for tax professionals

• Rental section added to IRS’s §199A FAQ page on website

• Final regulations issued on anti-clawback estate/gift tax provisions

• Only one penalty applied to taxpayer that was both the owner and beneficiary of a foreign trust

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2019-11-25 Current Federal Tax Developments

2019-11-18 Upcoming Events

Current Federal Tax Developments for the week of November 18, 2019: Upcoming Features

• Significant TCJA guidance to be issued by end of January 2020

• PLR allows advisory fees to be paid out of an annuity without trigger taxable income to owner

• IRS announces enforcement program for syndicated conservation easement programs

• IRS updates auto mileage rulings for changes made by TCJA IRS found to have attempted to assess tax on Son of BOSS after all statutes had expired

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2019-11-18 Current Federal Tax Developments

2019-11-11 Indexing Week

Current Federal Tax Developments for the week of November 11, 2019: Indexing Week

• Federal Circuit shoots down previously successful taxpayer argument that limited maximum FBAR penalty

• IRS publishes the 2020 inflation adjusted numbers

• Proposed regulations issued to revise the life expectancy tables for required minimum distributions

• Retirement plan numbers for 2020 issued by IRS

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2019-11-11 Current Federal Tax Developments

2019-11-04 Both a Home and An Investment

Current Federal Tax Developments for the week of November 4, 2019 Both a Home and an Investment

• Wisconsin fails in attempt to look to sublease to tax software sales based on computers sold to be used in the state

• IRS agrees that taxpayer qualifies for both §121 and §1031 for the sale of a former home destroyed by fire

• Draft Form 1065 and K-1 instructions released by the IRS

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2019-11-04 Current Federal Tax Developments

2018-10-28 Denied Deduction Not Excessive Fine

Current Federal Tax Developments for the week of October 28, 2019: Denied Deduction Not an Excessive Fine

• California rules on tax issues for directors that have meeting in California

• Chief Counsel’s office gives guidance on use of secured email exchanges

• §280E found not to represent an excessive fine even if the Tax Court doesn’t completely agree on why

• Interim guidance issued to Appeals employees on BBA partnership regime

• Whistleblower cannot force IRS to reopen an audit that he claimed was woefully inadequate

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2018-10-28 Current Federal Tax Developments