Keeping CPAs Up to Date on Tax Matters

A site devoted to articles on current developments in federal taxes geared toward CPAs in tax practice.

2020-11-16 IRS Throws in the Towel on One SALT Workaround

November 15, 2020 by Ed Zollars, CPA

This week we look at:

AICPA reports that the IRS is about to release what many will find is unwelcome guidance on expenses expected to be used for forgiveness under PPP loan program
IRS gives up on state entity level taxes on passthrough businesses as a workaround to the TCJA limit on the deduction of state and local taxes
Taxpayer attempts to argue his LLC was acting as an agent for his IRA custodian, but fails to convince the Tax Court

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2020-11-16 Current Federal Tax Developments

2020-11-09 Slowing Down RMDs - But Not Until 2022

November 08, 2020 by Ed Zollars, CPA

This week we look at:

The IRS releases revised tables to compute required minimum distributions from retirement plan accounts - but not until 2022
Taxpayer denied relief from late filing penalties even though he believed his CPA had filed an extension on his behalf
IRS publishes news release indicating relief for certain collection related actions due to COVID-19

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

2020-11-09 Current Federal Tax Developments

2020-11-02 SBAs Coming Questionnaire for Large PPP Loans

November 01, 2020 by Ed Zollars, CPA

This week we look at

IRS gives guidance to Congressional office on treatment of taxes paid on real estate cooperative
Guidance issued for W-2s to be issued for employers who deferred employee FICA at the end of 2020
SBA announces that a questionnaire will be sent to large PPP loan borrowers regarding need for the loan

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2020-11-02 Current Federal Tax Developments

2020-10-26 Tax Basis Capital Accounts and the 2020 Form 1065

October 25, 2020 by Ed Zollars, CPA

This week we look at:

Fees to enter a daily fantasy sports contest is a wager in the view of the IRS
Taxpayers must follow all of the criteria listed in Revenue Procedure to take advantage of the ruling
IRS adds retrieving funds from state unclaimed property fund to list of items for self-certification for late retirement plan rollover
Withholding is required if an employer sponsored retirement plan transfers funds to state unclaimed property fund
Draft instructions for 2020 partnerships released outlining requirement to report K-1 capital accounts on tax basis
CPA denied in attempt to reduce potential liability by claiming failure of another tax adviser in representing client to reduce penalty
Short term extension granted to October 31 to file FBAR reports

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2020-10-26 Current Federal Tax Developments

2020-10-19 FAQs Not Protected from Scrutiny as IRS Had Hoped

October 17, 2020 by Ed Zollars, CPA

This week we look at:

PPP forgiveness application deadline is not October 31
Fax line to send in Forms 1045 and 1139 will shut down at the end of 2020
Draft instructions to Form 8895 indicate that IRS not longer seeing charitable deductions as reducing QBI
Taxpayer could not claim accrued expenses to restore manufacturing line until following year
IRS FAQ on EIP for incarcerated individuals is subject to court review

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2020-10-19 Current Federal Tax Developments

2020 10 12 Simplified PPP Forgiveness Application for Small Loans

October 10, 2020 by Ed Zollars, CPA

This week we look at:

SBA's simplified Form 3508S for PPP forgiveness and the regulations authorizing its use for loans of $50,000 or less
Lenders told what to do when borrowers supply more expense documentation than necessary for full PPP loan forgiveness
Pre-PPPFA loan documents do not need to be modified to obtain PPPFA longer deferral period
QR codes will be added to CP14 and CP14 IA notices beginning later this month
SIFL rates for last half of 2020 published
Taxpayer finds no relief available for payroll taxes paid years earlier on nonqualified deferred compensation that will not paid due to subsequent bankruptcy of the employer

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2020-10-12 Current Federal Tax Developments

2020-10-05 PPP Loans and Change of Ownership

October 04, 2020 by Ed Zollars, CPA

This week we look at:

Final regulations issued for meals and entertainment
Withholding on retirement and annuity distribution regulations issued
S Corporations get special election for GILTI issues
SBA issues guidance on change of ownership for entities with PPP loans outstanding

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2020-10-05 Current Federal Tax Developments

2020-09-28 Excess Deductions Will Actually Be Deductible - Final

September 26, 2020 by Ed Zollars, CPA

This week we look at:

IRS issues bonus depreciation final regulations
Excess deductions on termination final regulations are issued
IRS grants relief for CCH e-filing problems on September 1

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2020-09-28 Current Federal Tax Developments

2020-09-21 Revised Forms Issued for COVID-19 Relief

September 19, 2020 by Ed Zollars, CPA

This week we look at:

IRS discusses options for expedited private letter ruling requests
Web page for marijuana industry posted by the IRS
Corporation by law had no shareholders, thus no S election was possible
Draft form to be used by self-employed to claim COVID-19 sick pay credits published
Final version of Form 941-X to be used to revised 2Q 2020 Forms 941 released

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2020-09-21 Current Federal Tax Developments

2020-09-14 What Is Not Part of a Signature?

September 13, 2020 by Ed Zollars, CPA

This week we look at:

A California decisions discusses the concept of domicile for state residency status
IRS publishes special per diem rates for FY 2020/2021, including high-low rates
Medicaid coverage of COVID-19 testing and diagnostic services is not minimum essential coverage
Tax Court looks at the effective date for a change in innocent spouse provisions
An IP PIN ruled not to be part of the signature for an electronically filed tax returns

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Articles describing this week’s update can be downloaded at:

2020-09-14 Current Federal Tax Developments

2020-09-07 Remember the SECURE Act?

September 05, 2020 by Ed Zollars, CPA

This week we look at:

IRS loses in an attempt to challenge a contribution of closely held stock to charity
Notice issued giving guidance on retirement plan changes enacted at the end of 2019
Second new version of Form 941 for 2020 released in draft form
Minister discovers he won't qualify to be paid social security or Medicare coverage due to not understanding employment taxes and pastors
IRS publishes web page on BBA Centralized Partnership Audit Regime

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2020-09-07 Current Federal Tax Developments

2020-08-31 Excellent Guidance to Confirm Fears

August 29, 2020 by Ed Zollars, CPA

This week we look at:

Crowdsourcing platform payments made in convertible virtual current for performing microtasks is taxable income
Payroll tax holiday guidance finally released by Treasury days before holiday is scheduled to begin
IRS temporarily expands and simplifies use of e-signatures
SBA issues new PPP guidance with de minimis owner rule and rules related to rents and mortgages as nonpayroll costs

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2020-08-31 Current Federal Tax Developments

2020-08-24 The Week of the Two Letters

August 22, 2020 by Ed Zollars, CPA

This week we look at:

Qualified plan loan offset amount proposed regulations issued to deal with TCJA plan loan rollover provision
US Chamber of Commerce and other organizations issue letter describing issues with payroll tax holiday Presidential memo
IRS warns employees to wait to file Forms 941-X on second quarter 2020 941s until new form released in late September
Chair of Ways & Means asks to IRS to pause sending notices that may relate to unopened payments and IRS complies two days later
IRS begins accepting 2019 amended individual returns electronically
Payments of interest on 2019 tax refunds are being paid out to taxpayers

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Articles for this week’s session can be downloaded as a PDF below:

2020-08-24 The Week of the Two Letters

2020-08-17 Checks Stuck in the Trailer

August 16, 2020 by Ed Zollars, CPA

This week we look at:

Taxpayer denied relief for late rollover when taxpayer had "borrowed" funds from IRA
Management company was not the customer for rental of vacation home
IRS gives relief for taxpayers who end up with dishonored checks due to IRS delays in opening mail
SBA updates PPP FAQ with information on insurance as a payroll cost
Guidance on interaction of EIDL advances and PPP loan forgiveness
SBA issues IFR on appeal procedures for PPP loans

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An PDF with articles on this week’s developments can be downloaded below.

2020-08-17 Current Federal Tax Developments

2020-08-10 Deferring Employee FICA - Forgiveness?

August 09, 2020 by Ed Zollars, CPA

This week we look at:

Summary of §163(j) final regulations SBA publishes PPP loan forgiveness FAQ
IRS reminds employers of ability to establish leave sharing plans for employees to provide COVID-19 relief
Proposed revenue procedure released to allow qualified residential living facilities to be §163(j) real estate businesses
IRS updates qualified plan safe harbor distribution notices for SECURE Act and CARES Act changes
President issues memorandum providing for deferral of employee OASDI, but leaves open issue of whether amounts will be forgiven

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

2020-08-10 Current Federal Tax Developments

2020-08-03 Rise of the Syndicates

August 02, 2020 by Ed Zollars, CPA

This week we look at:

IRS releases multiple regulation project texts on TCJA items
No syndicate relief offered for tax shelters by the IRS for small business accounting or §163(j)
Taxpayers informed how to deal with inventory issues when opting out of application of §471(a)
Forms 3115 for automatic method changes to be faxed in beginning in August

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Articles for this week broadcast can be downloaded as a PDF below:

2020-08-03 Current Federal Tax Developments

2020-07-27 Third Time to Court on Conservation Easement

July 26, 2020 by Ed Zollars, CPA

This week we look at:

Discussions continue on fourth COVID bill in the Senate
SBA announces the agency will begin accepting lender's documents for PPP loan forgiveness on August 10 (maybe)
IRS releases percentages for the premium tax credit for 2021
IRS position taken for strategic reasons in another conservation easement case doesn't bind the agency in a case with an unrelated taxpayer
Second Circuit agrees with Tax Court that property was not used in a trade or business

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2020-07-27 Current Federal Tax Developments

2020-07-20 The Tax Court Deals with Debt Issues

July 19, 2020 by Ed Zollars, CPA

This week we look at:

IRS describes letters issued for Form 7200 when various issues arrive
Loan was nonrecourse since lender did not take route that could have lead to deficiency judgment
Debt failed to be qualified principal residence interest
IRS proposes to add Schedules K-2 and K-3 for international partnership issues
PTIN fees to return next year

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

2020-07-18 Current Federal Tax Developments

2020-07-13 BBA Audit Flowchart

July 12, 2020 by Ed Zollars, CPA

This week we look at:

W2s will report FFCRA sick and FMLA pay to each employee
Congress extends PPP loan program through August 8, 2020
FAQ looks at the tax implications of receiving a CARES Provider Relief Payments
Depreciation limits for vehicles for 2020 released by the IRS
§265(a)(1) does not bar deduction under UBIT rules for a charity
Flowchart for BBA CPAR audit regime published by the IRS

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The articles for this week developments can be downloaded in the PDF below:

2020-07-13 Current Federal Tax Developments

2020-07-06 What is Not Discussed

July 04, 2020 by Ed Zollars, CPA

This week we look at:

IRS updates FAQ to discuss PPPFA changes to employer payroll tax deferral rules
Relief granted to allow for changes to be made in 2020 to safe harbor 401(k) plans
IRS outlines issues with marketing materials for CRAT tax shelter being promoted
Memorandum discusses what impact a superseded return has on the statute of limitations for returns filed on extension
IRS announces July 15 deadline will not be extended for 2019 returns

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

2020-07-06 Current Federal Tax Developments