2021-07-12 Information Letter Week

This week we look at:

• TAS declines to accept stand-along advance child tax credit cases

• IRS agent’s tax home remained at his assigned office

• FSA participants required to document qualification of expenses paid with debit card

• IRS explanation of why Forms 1099R don’t identify QCDs

• IRS discusses legal expense deductions

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

Articles for this week’s developments can be downloaded in the PDF below.

2021-07-12 Current Federal Tax Developments

2021-07-05 Supreme Court Declines to Hear Dispute Over State Taxation of Nonresidents

This week we look at:

• IRS extends special treatment of employee leave donation for COVID-19 relief

• Guidance published on making farm NOL elections

• Penalty relief for issues with 2021 Forms K-2 and K-3

• Supreme Court turns down hearing dispute over taxing out of state employees

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

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

2021-07-05 Current Federal Tax Developments

2021-06-28 Is the PPP Questionnaire Going Away?

This week we look at:

• SBA reported to be withdrawing PPP loan questionnaires

• Court finds not clear if taxpayer qualifies for home gain exclusion due to unforeseen circumstances

• IRS extends special remote witnessing of signing plan documents through June 30, 2022, may make it permanent

• CPA’s conviction for assisting in the filing of false returns upheld - rejected “I just used what the client gave me” defense

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

Articles on these updates can be downloaded as a PDF below:

2021-06-28 Current Federal Tax Developments

2021-06-21 ACA Survives Another Trip to SCOTUS

This week we look at:

• Supreme Court finds no status for challenging ACA due to TCJA changes

• IRS backlog was huge at May 1 which causes two pieces of guidance to be issued:

  • Do not file Form 990-EZ on paper (unless you want problems)

  • Offer in compromise program changes put in place due to backlog

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

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

2021-06-21 Current Federal Tax Developments

2021-06-14 Tax Status of Legal Settlement

This week we look at:

• IRS publishes Q & A on 2021’s enhanced child and dependent care credit on website

• Malpractice settlement related to taxpayer’s divorce was taxable to her - and situation made worse to going to Tax Court

• IRS discusses interaction of depreciation related §481(a) adjustments and computation of ATI through 2021

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

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

2021-06-14 Current Federal Tax Developments

2021-06-07 Perhaps Tax Instructions Aren't Just for Attorneys

This week we look at:

• Senate Parliamentarian’s second opinion on reconciliation limits practical use of revision of reconciliation instructions

• Long-time tax CPA who admits not reading Schedule B instructions hit with willful failure to file FBAR penalties

• MoneyGram is not a bank, meaning losses from 2008 financial crisis secured debts were capital losses

An audio-only version of this week’s program is available to stream or download below:

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

2021-06-07 Current Federal Tax Developments

2021-06-01 Is It Already Too Late To Sell to Get Long Term Capital Gain Rates

This week we look at:

• Green Book issued to explain administration’s revenue proposals

• Whether or not a 1099 must be issued, income still must be reported

• IRS gives more information about unemployment exclusion and community property states

• TAM looks at lack of “fact of the liability” for all events test dispute

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

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

2021-06-01 Current Federal Tax Developments

2021-05-24 ARPA COBRA Premium Assistance Questions and Answers

This week we look at:

• IRS will begin sending out advance child tax credit payments on July 15

• IRS announces simplified method to file a return for those not required to file to qualify for advance payments

• IRS provides Q&A on COBRA premium assistance payments

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

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

2021-05-24 Current Federal Tax Developments

2021-05-17 Direct Submission to CAF Coming

This week we look at:

• IRS begins revising returns that reported taxable unemployment and excess APTC

• HSA and HDHP numbers for 2022 released

• Census will not change the boundaries of qualified opportunity zones

• IRS looking to automate submission of power of attorney forms

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

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

2021-05-17 Current Federal Tax Developments

2021-05-10 Summons and Cryptocurrency Exchanges

This week we look at:

• IRS looks at issues for use of an aircraft by a sole proprietor

• Dividends from controlled C corporation are still part of net investment income under IRC §1411

• IRS allowed to serve John Doe summons on Kraken exchange for information on customers

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

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

2021-05-10 Current Federal Tax Developments

2021-05-03 Community Property Unemployment Exclusion Windfall

This week we talk about:

• IRS confirms how community property states, MFS, and 2020 unemployment exclusions work

• Tax Court rules rent paid was unreasonably high, convert portion to dividend

• White House releases a fact sheet on proposed tax law changes

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

A PDF with the articles for this week’s updates are provided below:

2021-05-03 Current Federal Tax Developments

2021-04-26 IRS Extends Deviation for Electronic Signatures

This week we look at:

• A quick discussion of what know (little) and don't know (a lot) about not yet proposed changes to capital gain rates

• IRS provides safe harbor for returns filed on or before December 27 for PPP expenses

• IRS issues fact sheet to promote paid leave/family leave payroll tax credit subsidy for vaccine issues

• Deviation allowing for electronic signatures for some forms extended again

• IRS admits to delays in MeF payment processing near April 15

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

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

2021-04-26 Current Federal Tax Developments

2021-04-19 Why the Federal Tax Alimony Test Still Matters

This week we look at:

• Cover letter from state judge was part of the divorce documents

• PLR discusses medical expense definition

• IRS announces gift tax return due date remained April 15

• Only overpayments existing at April 15 can be applied to quarter one 2021 estimate payment

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

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

2021-04-19 Current Federal Tax Developments

2021-04-12 Overpaying on May Extensions

This week we look at:

• IRS gives guidance on ARPA and the advance premium tax credit for 2020

• CCA issued to give details on apply tax provisions to hard forks of virtual currency

• IRS disagrees with court decision on treatment of defined benefit pension benefit for insolvency

• A restaurant is defined for 100% deduction

• The saga of 2020 Form 1040 overpayments, extensions and first quarter estimates

An audio only version of this week’s update can be downloaded below:

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

2021-04-12 Current Federal Tax Developments

2021-04-05 Entering Tax Section 51 - Odd Things Happen Here

This week we look at:

• IRS gives details on automatic refunds on unemployment exclusion

• Formal notice of extension of time to file 2020 Forms 1040 issued

• IRS updates ERC guidance for the version for first six months of 2021

• A look at the mess that is the issue of whether controlling shareholder wages can qualify for ERC

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

2021-04-05 Current Federal Tax Developments

2021-03-29 IRS Quietly Revises Unemployment Worksheet

This week we look at:

• IRS makes a major change in computation of excludable ARPA unemployment

• PPP loan program applications extended for two months - but funds only likely to last until mid-April without replenishment

• PPE is defined by the IRS to represent medical care for purposes of deducting the expenses

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

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

2021-03-29 Current Federal Tax Developments

2021-03-21 Tax Season for 1040s Only Goes On One More Month

This week we look at:

• IRS releases instructions on reporting ARPA unemployment exclusion

• AICPA recommends IRS issue clarification on PPP forgiveness/passthrough issues

• IRS pushes back the filing date for Forms 1040 only - everything else still due on April 15, including Q1 2021 estimates

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

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

2021-03-22 Current Federal Tax Developments

2021-03-15 American Rescue Plan Act of 2021

A look at the American Rescue Plan Act of 2021

• Unemployment exclusion for 2020

• Recovery Rebate for 2021

• Prepaid Child Tax Credit for 2021

• Earned Income Tax Credit Changes

• Refundable Dependent Care Assistance

• Sick/Family Leave Credits

• 2021 Employee Retention Credit

• Premium Tax Credit Revisions

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

A copy of the slides summarizing the law presented in this week’s presentation can be downloaded below.

2020-03-15 Current Federal Tax Developments

2021-03-08 Employee Retention Credit and PPP Forgiveness

This week we look at:

• SBA gets PPP loan program change guidance published

• Senate revises proposed COVID-19 relief bill, adds partial exclusion for unemployment compensation

• IRS continues to “clarify” the virtual currency question on Form 1040

• Guidance issued on interaction of PPP forgiveness and 2020 employee retention credit

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

Articles on some of this week’s topics can be found in the PDF you can download below:

2021-03-08 Current Federal Tax Developments

2021-03-01 Will We See a New Tax Bill

This week we look at:

• Late revisions to PPP loan program

• House passes new COVID-19 relief bill, moves on to Senate

• Taxpayer gets out of tax on $300,000 of credit card rewards

• Texas taxpayers get extension to June 15

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

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

2021-03-01 Current Federal Tax Developments