2023-06-05 Hobby Losses Expenses Effectively Nondeductible

This week we look at:

• Fourth Circuit does not agree with view expressed by Seventh Circuit in Menard, Inc. that C corporation reasonable compensation only depends on a reasonable return to investors

• Eleventh Circuit holds that “hobby loss” expenses under §183 are miscellaneous itemized deductions

• Elderly attorney had reasonable cause for failure to file payroll tax returns and timely pay payroll tax liabilities

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

A copy of this week’s slides and links to articles can be downloaded below:

2023-06-05 Current Federal Tax Developments

2023-05-30 Failure to File Claim Via Certified Mail Was a Bad Idea

This week we look at:

• Tax Court finds they have no authority to review the IRS notice for certification of seriously delinquent tax debt to State Department

• IRS publishes warning signs for employers to use to identify ERC scams

• Fourth Circuit finds that Section 7502 fully supplants common law mailbox rule for filing documents

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

The slides and links to articles for this week’s broadcast can be downloaded below:

2023-05-30 Current Federal Tax Developments

2023-05-22 Supreme Court and IRS Giving Notice of Summons

This week we look at:

• Supreme Court rules in favor of IRS on issue of when notice must be sent when the IRS issues a third-party summons

• IRS agent gets distracted by small issues, fails to investigate potentially much larger one and it costs the IRS at Tax Court

• IRS announces 2024 HSA and excepted benefit HRA inflation adjusted amounts

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

This week’s slides and links to articles can be downloaded below:

2023-05-22 Current Federal Tax Developments

2023-05-15 The PEO and Your ERC Refund

This week we look at:

• IRS email discusses issues that arise with payroll tax refunds when a PEO is involved who itself has unpaid tax liabilities

• Letter ruling provides that Forms 1099-C must be filed by a credit union due to writing off certain debts as part of a legal settlement

• IRS plans to add more detail to partnership K-1 liability disclosures on 2023 returns

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

A copy of the slides with links to stories for this week’s update can be downloaded below:

2023-05-15 Current Federal Tax Developments

2023-05-08 Time Zones and Timely Electronic Filings

This week we look at:

• IRS issues CCA making clear how strict the §125 substantiation rules are

• Taxpayer’s lack of documentation forces him to accept preparer’s gross gambling winnings and limits his gambling loss deduction

• Tax Courts finds that last second rule for filing a Tax Court petition is not the same as for returns filed via eFile

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

A PDF of this week’s slides and links to articles can be downloaded below:

2023-05-08 Current Federal Tax Developments

2023-05-01 Court Unimpressed by Claimed CRAT Magic

This week we look at:

• More CRAT problems - but this one the IRS had warned against using

• Change of protocol underlying cryptocurrency from proof of work to proof of stake is not a taxable event

• Fact some countries now treat Bitcoin as legal tender does not change its status as property, not foreign currency

• Taxpayer finds they had to wait a year to claim a deduction for cashier’s check purchased to settle legal dispute

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

The slides and links to supporting articles can be downloaded below:

2023-05-01 Current Federal Tax Developments

2023-04-23 Catching Up After Tax Season

This week we look at:

• Another taxpayer fails to establish either spouse as a real estate professional

• SPIFF was not a separate trade or business

• IRS releases revised Form 3115

• IRS letter to Senator on PEOs and ERC

• FinCEN publishes FAQ on Corporate Transparency Act reporting

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

The slides and citations for this week’s broadcast can be downloaded below:

2023-04-23 Current Federal Tax Developments

2023-04-03 EV Battery Rules Released

This week we look at:

• IRS announces non-acquiescence in Tax Court case on taxpayer asserting substance over form

• IRS highlights bad tax advice on social media

• IRS rules that assets held in intentionally defective grantor trust do not obtain date of death basis

• IRS releases proposed battery regulations for new EV credits

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

The slides and citations for this week cna be downloaded below:

2023-04-03 Current Federal Tax Developments

2023-03-26 ERC Scams Lead the Dirty Dozen

This week we look at:

• IRS begins 2023’s Dirty Dozen Tax Scams with problematical ERC refund claims

• IRS announces position on evaluating when a non-fungible token is a collectible

• C corporation not allowed to take home office expenses for owner-employee’s home

• IRS email reminder that BBA opt-outs must be made on original returns

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

The slides and links for this week’s broadcast can be downloaded below:

2023-03-27 Current Federal Tax Developments

2023-03-20 Taxes and Medical Expenses

This week we look at:

• Trust that was meant to be a CRAT found not to be one and attempted fix was too late and not undertaken correctly

• PLR looked at whether item for consumption by infant to reduce risk of developing a condition was all or partially a medical expense

• IRS produces FAQ on whether different types of health expenses qualify as medical expenses

The slides and links to the documents can be downloaded here:

2023-03-20 Current Federal Tax Developments

2023-03-13 Seaview Trading Reversed in Ninth Circuit

This week we look at:

• IRS and OPR issue separate warnings on ERC claims

• Ninth Circuit reverses Seaview Holdings LLC decision after en banc hearing, partnership return not forwarded to Ogden was never filed

• IRS gives financial institutions RMD notice relief

• S corporation accidentally ended its status by revising its LLC operating agreement

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

You can download a copy of the slides with links to documents.

2023-03-13 Current Federal Tax Developments

2023-03-06 Non-Willful FBAR Penalty is on a Per-Form Basis

This week we look at:

• Deposit and use by sheriff of jail meal money not found to be a mere misunderstanding

• Amounts taxpayer expected to repay with future earnings found not to be loans, taxable upon receipt

• SCOTUS rules non-willful FBAR failure is a per-form not per-account penalty

• CPA fails to provide substantiation for deductions for practice

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

A copy of this week’s slides and links to source materials can be downloaded below:

2023-03-06 Current Federal Tax Developments

2023-02-27 More Information Returns Required to be E-Filed

This week we look at:

• Proposed regulations issued for retirement plan forfeitures

• OIRA completes review of crypto broker proposed regulations, expected to be issued shortly

• IRS extends relief for taxpayers impacted by disasters in California, Alabama and Georgia

• IRS issues final business electronic filing mandate regulations

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

The slides and links to the documents discussed can be downloaded below:

2023-02-27 Current Federal Tax Developments

2023-02-20 IRS Starts Allow Some Online Uploads of Documents for Notices

This week we look at

• IRS announces program to accept upload of documents in response to some, but not all, notices to taxpayers

• SECURE 2.0 Section 603 drafting glitch puts catch-up contributions at risk for 2024 as various parties push to get a fix

• IRS will not automatically challenge §199A deduction for cannabis businesses-but W-2 wage problems may get in the way

A copy of the slides and links to related material can be downloaded below:

2023-02-20 Current Federal Tax Developments

2023-02-13 State Payment Relief for Taxpayers

This week we look at:

• IRS relents to pressure, releases guidance on state payment programs’ taxability (generally it’s good news)

• IRS begins offering direct deposit for Form 1040-X electronic filers - but it will still take a long time to process

• No substantive §174 guidance likely before initial tax deadlines (March & April)

• Form 4868 didn’t qualify as informal claim for refund

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

A copy of the slides with links to source materials can be downloaded below:

2023-02-13 Current Federal Tax Developments

2023-02-06 Reconsidering EV SUVs

This week we look at:

• IRS revises classification of clean vehicles for purposes of determining vehicles subject to $80,000 MSRP limit

• Proposed revenue procedure published to establish new voluntary tip reporting procedure

• Taxpayer’s log of every mile of vehicle use had issues that prevented Tax Court from accepting it for meeting burden under IRC §274(d)

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

A PDF of the slides for this week’s update can be downloaded below;

2023-02-06 Current Federal Tax Developments

2023-01-30 Welcome to IRIS

This week we look at:

• IRS begins accepting 2022 income tax returns

• IRS opens up IRIS portal for electronic filing of information returns

• Corporation forced to get private letter ruling on S election due to failure to obtain all required consents

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

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

2023-01-30 Current Federal Tax Developments

2023-01-23 IRS Says Phones Are Improving

This week we look at:

• IRS provides an extended due date for some in Alabama and Georgia impacted by storms

• IRS announces 10 minute response time on Practitioner Priority Line

• Taxpayer’s §401(k) distribution not excluded from income based on diabetes diagnosis

• IRS releases auto depreciation limits under §280F for 2023

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

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

2023-01-23 Current Federal Tax Developments

2023-01-16 The IRS Memos on Cryptocurrency

This week we look at:

• IRS begins accepting returns on January 23

• California taxpayers get due dates delayed until May 15

• Amended return research credit additional information requirements added to draft Form 6765 instructions

• Employer provided housing not excluded from income under §119

• No loss allowed on not quite worthless not really stablecoin

• Appraisals required for donation of cryptocurrency

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

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

2023-01-16 Current Federal Tax Developments

2023-01-09 S Corporation Warts Review

This week we look at issues that arise with S corporations.

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

You can download the write-up of the Twitter thread that drove this week’s program here:

Why Aren’t S Corporations Perfect for All Clients and Situations?