This week we look at: Proposed regulations issued for digital asset broker reporting on Form 1099-DA IRS delays requirement for high income employees to make employer plan catch-up contribution to designated Roth accounts until plan years beginning after December 31, 2025 2024 health care premium tax credit percentages published by the IRS

This week we look at: Limited relief likely coming for beneficial ownership reporting IRS being challenged in an attempt to treat state law limited partners as receiving SE income Rent your home to your business for 13 days each year plan mainly failed Advance memo states IRS objection to a marketed trust tax avoidance plan IRS memo explains credit unions can only claim COVID ERC on 2021 wages

This week we look at: Deduction for non-qualified deferred compensation not accelerated for the seller when the liability is transferred to the buyer of a business  Tax professionals and taxpayers warned about issues with certain employee stock ownership plan (ESOP) arrangements Reduction of non-recourse debt amount was added to sales proceeds, not a cancellation of debt so no §108 relief was available

This week we look at: IRS rules cryptocurrency staking rewards are taxable when taxpayer obtains dominion and control Interim guidance issued for home energy audit tax credit under IRC §25C added by IRA 2022 Proposed regulations issued to add monetized installment sales to listed transactions

This week we look at: Oversight Subcommittee of House Ways & Means Committee holds a hearing on ERC issues, discusses potential amnesty program IRS ending most announced revenue officer visits Taxpayer finds out that there may very well be a tax consequence when you borrow against your life insurance policy and then let the policy lapse

This week we look at: IRS memo makes it clear the agency is very skeptical about extended supply chain ERC claims Third Circuit rules that equitable relief is available for failure to file Tax Court petition in 90 day period for a deficiency IRS asked by Tax Court to justify suspense account method for losses deducted in excess of basis in closed years Taxpayers had to pay tax on funds taken from IRA/pension funds that were paid to fraudster

The IRS looks at: IRS extends SECURE Act inherited IRA RMD relief for one additional year, adds special rollover rule for those born in 1951 due to SECURE 2.0 Act changes IRS grants relief to victims of Vermont flooding. Failure to attach simple election leads to requesting (and paying for) 11 separate private letter rulings Copyright 2023, Kaplan, Inc.  

This week we look at: S corporation loses on research credit claim and gets hit with penalties - risks of a credit study Exempt organization status denied for organization formed to raise funds for one person’s medical bills Discussion of tax research hierarchy in this short week

This week we look at:  Supreme Court takes on §965 transition tax case for upcoming term:  what do we do to protect our clients? The IRS releases draft versions of key 2023 partnership income tax returns Firefighter’s sexual harassment complaint settlement was not excludable from income

This week we look at: IRS ends COVID-19 relief for high deductible health plans effective for plan years ending after 12/31/24 Taxpayer fails in attempt to get IRS permission to make a late §475(f) mark to market election Taxpayer who filed Tax Court petition 11 seconds too late due to technology challenges has petition dismissed Sherlock Holmes on tax research  

This week we look at OIRA is no longer going to review IRS regulations before issuance IRS updates list of automatic accounting method changes Proposed regulations issued on transfers of certain energy credits and DirectPay for certain credits What can go wrong with an employee retention credit refund claim?

This week we look at: 3 proposed tax bills introduced by Chair of House Ways & Means Committee Wellness indemnification payment is taxable income to employee and subject to payroll taxes IRS grants request to make election to skip claiming bonus depreciation when partnership discovers claiming bonus is bad news at the state level for certain partners

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

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

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  

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

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 Copyright, Kaplan, Inc.

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 Copyright, Kaplan, Inc.  

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 Copyright, Kaplan, Inc.

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

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  

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

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

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

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

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

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)

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

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

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

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

Congress passed the SECURE 2.0 Act of 2022 that was signed into law on December 29, 2022. This program gives a brief overview of the provisions of this Act that will help tax professionals advise their clients about the impacts and opportunities found in this law.

This week we look at: IRS to issue regulations for definitions for new clean vehicle credit List published on IRS website to assist in determining if a vehicle could qualify for new clean vehicle credit Incremental cost safe harbors for §45W commercial clean vehicle credit issued by IRS 2023 mileage rates release Final 2022 Schedule K-2 and K-3 Form 1065 instructions released

This week we look at: Congress passes spending bill which included SECURE 2.0 Act of 2022 Final Schedules K-2 and K-3 instructions issued for Form 1120S IRS delays digital asset reporting until regulations are issued Expanded Form 1099-K reporting delayed for one year by the IRS Copyright 2022, Kaplan, Inc.

This week we look at: IRS memorandum looks at marketed program to defer recognition of legal fees Automatic change of accounting method procedure released by the IRS IRS publishes news release on upcoming FICA/SE tax 2020 deferral payment due date

This week we look at: IRS releases second draft of instructions for preparing 2022 Schedules K-2 and K-3 for partnerships and S corporations IRS begins issuing proposed regulations to deal with court losses on method used to add listed transactions not following the Administrative Procedures Act Copyright 2022, Kaplan, Inc.

This week we look at: IRA 2022 prevailing wage and apprenticeship requirement guidance issued by the IRS Taxpayers denied partnership loss due to a large number of issues, many of which were enough standing alone to deny the loss entirely  Copyright 2022, Kaplan, Inc.

This week we look at: Damage award found to not be for physical injuries, entire amount taxable Partnership language in LLC operating agreement revision terminated S corporation status (creating a C corporation) Taxpayer failed to wait required 6 months for IRS to act on refund claim before filing suit Copyright 2022, Kaplan, Inc.

This week we look at: IRS news releases this week on: Qualified charitable distributions Seventh Annual National Tax Security Awareness Week Copyright, Kaplan, Inc.

This week we look at: Tax Court finds that adding to listed transactions requires IRS to comply with Administrative Procedures Act Election results and likely tax actions in lame duck session What about next year with the new Congress? Copyright 2022, Kaplan, Inc.

This week we look at: IRS releases Form 1120-S Schedule K-2 and K-3 draft instructions with similar exceptions to Form 1065 version IRS gives some indication on when §174 guidance will come out Tax benefits alone not enough to establish taxpayer had a profit motive in solar lens leasing business IRS grants late rollover relief to victim of fraud Copyright 2022, Kaplan Inc.

This week we look at: It’s PTIN renewal time again and the IRS has released a news release announcing the fact IRS publishes draft 2022 Form 1065 Schedules K-2 and K-3 instructions with revised exceptions to filing Schedules K-2 and K-3 Copyright Kaplan, Inc.

This week we look at: IRS announces and appears to roll out pilot program to block automated calling systems 2023 inflation adjusted general tax amounts released by the IRS Retirement/IRA limitations released for 2023 Copyright, Kaplan, Inc.

This week we look at AICPA writes the IRS again on issues with PTET taxes SECURE Act Proposed Regulations RMD rules for inherited accounts in pay status effective date delayed IRS releases S corporation relief guidance AICPA Tax Section fact sheet on the employee retention credit Copyright 2022, Kaplan, Inc.

This week we look at: FinCEN releases final regulations that will require beneficial owner reporting for small LLCs and corporations IRS updates FAQ for state and local fiscal recovery funds used for home purchases Hurricane Ian relief announced by Treasury, delays most filings to February 15, 2022 Copyright Kaplan, Inc.

This week we look at: IRS issues reminder on penalty relief deadline that makes some modifications IRS publishes another news release pushing the CCA on improper PPP loan forgiveness Copyright Kaplan, Inc.

This week we look at: IRS memorandum states that PPP loan forgiveness is taxable if taxpayer did not actually qualify for forgiveness granted AICPA adds to items requested for additional penalty relief under Notice 2022-36 Copyright, Kaplan, Inc.

This week we look at: Chair and Ranking Member of the Senate Finance Committee send Enhancing American Retirement Now (EARN) Act to the Senate floor IRS inadvertently makes Form 990-T data on non-§501(c)(3) organizations available for bulk download Reasonable cause for failure to file/pay does not include common financial challenges