Federal Tax Update Podcast

This week we look at the rules involving the reconciliation process in Congress, the path that it appears most likely any tax bill enacted to deal with the expiration of many TCJA provisions at the end of 2025.

This week we look at: Retirement plan limits announced by the IRS, basically completing the tax inflation adjustments for 2025 IRS emailed Chief Counsel Advice outlines dealing with SECA and the net investment income tax issues arising from a BBA partnership exam

This week we look at: IRS releases inflation adjusted numbers for most items aside from retirement plans for 2023 IRS has more bad news for those who fail to pay over trust fund taxes to pay other expenses Another US District Court denies a preliminary injunction to bar enforcement of the BOI reporting rules

This week we look at: S corporation finds multiple ways to terminate its S status, asks IRS forgiveness which is granted IRS rules condoms are medical expenses for tax purposes IRS adds items to list of preventive care an HDHP can pay without the insured having met the annual deductible PTIN registration opens for 2025 Staking income challenge returns to court

This week we look at: Additional BOI clarifications from online discussions regarding a CPA firm’s reporting obligations and confusions about reporting by entities that don’t register with a state for formation but which do file tax returns

This week we look at: DOJ has scheduled a December 2 hearing on the proposed rule to reschedule marijuana BOI reporting confusions that keep coming up as questions in online discussions - time to review

This week we look at: IRS announces the reopening of the ERC Voluntary Disclosure Program on somewhat less generous terms then the first program provided National Taxpayer Adviser discusses issues related to ERC Notices of Disallowance issued by the IRS Copyright 2024, Kaplan, Inc.

This week we look at:  Tax bill fails to clear a procedural vote in the Senate, reducing the likelihood we’ll see the bill enacted before this Congress leaves office US District Court declines to issue preliminary injunction requiring the IRS to terminate the ERC claim moratorium, but finds much the court liked in the plaintiff’s arguments.

This week we look at: FinCEN adds two more questions to BOI FAQ page IRS adds five new warning signs for problematic ERC claims and announces new developments coming in ERC enforcement Chief Counsel Memorandum outlines position on tax exempt organizations dealing with §52 provisions for ERC  

This week we look at: Taxpayer can’t simply rely on tax software when preparing their return, even if they aren’t being nominated for Secretary of Treasury IRS finalizes SECURE Act/SECURE 2.0 Act required minimum distributions regulations IRS proposed regulations address the problem of determining the applicable age for those born in 1959  

This week we look at: FinCEN updates the FAQs for BOI reporting, adding information about entities that cease to exist New Jersey Committee on Unauthorized Practice of Law releases letter outlining when CPAs and EAs may prepare and/or file BOI reports for clients without the assistance of an attorney Another PLR issued for missed ESBT elections for trusts that qualified to make such elections

This week we look at End of term US Supreme Court cases that will likely impact challenges to Treasury regulations, overturning the concept of Chevron deference and extending the statute to challenge regulations under the Administrative Procedures Act

This week we look at: Ninth Circuit rules that statute of limitations for the IRS to sue for recovery of erroneous refund begins when the check clears the Federal Reserve and is approved for payment by the US Treasury IRS National Taxpayer Advocate announces the IRS will automate FTA abatement of penalties beginning in 2026 Attorneys report some ERC claimants now interesting in filing suit to accelerate their claim processing

This week we look at: Supreme Court rules, in a more divided than it may appear opinion, that the §965 transition tax is Constitutional, sustaining the result from the Ninth Circuit in the Moore case. IRS gives interim guidance for special distribution relief in the SECURE Act 2.0 for certain distributions. IRS indicates it will now be (slowly) processing ERC claims, vast majority show issues

This week we look at: IRS provides last minute relief for payment of second quarter corporate estimated tax payments related to corporate alternative minimum tax En-banc rehearing request denied in case of Farhy v. Commissioner by DC Circuit CPA pleads guilty to tax charges related to syndicated conservation easement program Taxpayer Advocate warns of relying on generative AI for answering tax questions for consumer tax software - and there are just as big of issues for tax professionals

This week we look at: US Supreme Court rules that a requirement to redeem the decedent’s shares cannot be considered to reduce the value of the entity, but life insurance proceeds received by the entity to fund the buyout will increase the value Taxpayer denied relief for late rollover when funds were accidentally transferred from employer plan to Roth IRA IRS rules certain payments related to East Palestine, Ohio derailment are §139 disaster payments What options exist for an employer with a pending ERC claim?

This week we look at: IRS announces that Direct File will continue into 2025 and be expanded while maintaining other programs A taxpayer finds its not so simple as just file a Form 2553 if you want to have an LLC taxed as an S corporation, but did realize the error fast enough to get a PLR to restore S status  

This week we look at: Yet another PLR requested for missed QSST election after S shares moved to trust following death of a shareholder Tax preparer’s conviction for willfully filing false returns upheld on appeal despite his argument he had doing what he did for years Letters to taxpayer from IRS Appeals did not extend the time to file suit for a claim for refund A partnership had properly elected to use BBA audit provisions early, rendering IRS FPAA invalid

This week we look at: IRS gives update on final results for ERC voluntary compliance program and discusses the future Taxpayer’s contract did not make payment contingent on success of research DOJ announces CPA firm barred from promoting CRAT/single premium annuity shelter IRS provides information on CAF “under review status” and changes to requesting transcripts

This week we look at: Final regulations issued on credit transfer provisions of the Inflation Reduction Act Tax Court rules the law does mandate a minimum level of attention by a supervisor when approving a proposed penalty IRS announces the end of the Direct File pilot and will announce the next steps shortly Copyright 2024, Kaplan Financial Education